Secret Sales, the marketplace that sells surplus stock for fashion, sportswear and beauty brands, has raised 10 million US dollars in series B funding to accelerate its expansion in Europe.
The new funding is from the same group of investors that led the company’s first round of funding in June 2021, including European private equity investor Perwyn, Belerion Capital, an e-commerce investment specialist and early-stage investor in Asos, The Hut Group and Boohoo, and Big Ideas Group.
In a statement, Secret Sales said it will use the new capital to elevate its unique marketplace technology, which as of February 2023, has cultivated an inventory of 25 million items with a combined value of 3 billion pounds, an increase of 125 percent year-on-year.
The goal it adds is to help accelerate the company’s journey towards becoming the “go-to destination” for non-full price retail in all main European markets by 2025.
This follows recent launches in Belgium and the Netherlands, which it states has already resulted in “impressive growth,” accounting for 1,129 new brands and over 400 million pounds in live inventory in less than a year. It hopes that by focusing on 12 additional European territories it can replicate that success with each new expansion.
Secret Sales looking to become Europe’s largest marketplace for non-full-price fashion
Chris Griffins, chief executive of Secret Sales, said: “With the current economic climate still uncertain, and the funding market particularly tricky to predict, we are extremely proud of our success in this Series B funding. The confidence of our existing investors is testament to the incredible results we have achieved during this past year, showing that there is significant reason and opportunity to invest in the Secret Sales business model worldwide.
“The ongoing demand from brands and retailers looking for an upmarket, profitable, and sustainable way to sell non-full price inventory has accelerated and we are fast becoming the only real 360-degree solution. We’re thrilled to have closed this funding round as it enables us to embark upon the next stage of our growth journey and create a more sustainable future for fashion.”
Iain McDonald, founder of Belerion Capital Group and non-executive director at Boohoo and The Hut Group, added: “Belerion is delighted to back Secret Sales in its most recent funding round. Chris and the team continue to scale the business very impressively and, in so doing, are transforming the way brands clear excess inventory.
“This latest funding round will allow an accelerated international roll out. We are very happy to increase our shareholding in the business and look forward to further success.”
Chris Griffin and Matt Purt acquired Secret Sales in March 2020, relaunching the former members-only flash sales site as a dedicated marketplace.
As part of this latest funding round, Secret Sales also added that Angus Duthie-Jackson from Perwyn will join the board.