Flash sales site Secretsales has received £4.5m of new investment led by investment capital firm Partech Ventures and French private equity firm 123Venture, as the etailer seeks to boost its UK customer base.
The majority of the investment came from the Partech Ventures’ Partech VI fund and 123venture. Other contributors included existing investors Doughty Hanson, Pentech, Secret Sales founders Nish and Sach Kukadia and some of the management team.
The company aims to grow market share in the UK by improving personalisation on the website and through other customer touch-points including email. The business will also improve its technology platform making it easier for customers to use.
Philippe Collombel, managing partner of Partech Ventures, said he was impressed by Secretsales’ performance. “Globally, the flash sales market has undergone a revolution where the stronger, data-driven businesses are starting to successfully emerge.”
In the company’s latest financial results sales increased by 69% to £27.4m. However in October, Secretsales said it would make a loss of around £3m in 2013, but Nish Kukadia said it would “absolutely” be in the black in 2014.
Kukadia estimates membership of 3.5 million to 3.6 million would see it break even. The site currently has 3.2 million registered members.