Private sales site SecretSales will expand its sourcing, marketing and technology functions, after receiving a £6.3m funding boost from a syndicate of investors.
The investment comes from Doughty Hanson Technology Ventures, Pentech Ventures and OCP Innovation, a fund managed by Partech, and is expected to be used to develop the business’ sourcing, marketing and technology functions.
The funding will also create several new jobs at the etailer, adding to the 50 staff already employed by the business, including that of a marketing director, an operations director, a chief financial officer, a market analyst, a product manager and buying roles across all categories.
“The new funding will enable us to develop deeper, more meaningful services, confidently positioning SecretSales as an integral layer of the retail mix,” said SecretSales co-founder and buying director Sach Kukadia.
He added that SecretSales will continue to work with its existing brands and develop those relationships further.
“SecretSales provides the perfect environment to sell excess inventory and continues to bring brands and customers together in an innovative and engaging way. As well as providing a significant revenue stream for our brand partners we aim to protect their integrity and remain discreet,” he said.
As a result of the investment, Sergio Dias, former chief executive of German private sales site brands4friends.de, will join the business as executive chairman.
Two of SecretSales’ four original founders, Michael and Silvia Cody, will step down from their active roles in the business but will remain shareholders. The other two founders, Sach Kukadia and Nish Kukadia, remain with the business in their current roles.
Partech focuses on high-growth opportunities in internet and information technology and previously invested in private sale site www.brands4friends.de, which was sold to eBay for $200m (£127.4m) in December 2010.