Beyond the Rack Completes Follow-On Round of Equity Funding

MONTREAL, Jan. 28 /PRNewswire/ -- Beyond the Rack today announced that it recently closed a $2 million (USD) investment round that included well-known European Internet entrepreneurs Oleg Tscheltzoff and Oliver Jung, as well as Montreal-based venture fund Montreal Start Up. This investment is in addition to the $2.5 million (USD) of previous funding the company has received.

Members-only shopping club sites are the fastest growing segment of e-tailing and Beyond the Rack (www.beyondtherack.com), based in Montreal, ranks among the market leaders in terms of growth rate and site traffic.

According to Compete.com, a leading Web analytics company, Beyond the Rack now leads the North American shopping club market in site traffic, both in total visits and unique visitors. Beyond the Rack attracted over 2.6 million unique visitors and 4.3 million visits in the month of December 2009.

"We've steadily grown our revenue between 40% and 50% each month," said BTR CEO Yona Shtern. "Our investors all recognize the importance of sustaining our rapid rate of growth, and this latest investment will allow us to continue to expand rapidly."  

"We attribute our explosive growth to the confidence and satisfaction of our members, who are our greatest advocates," added Mr. Shtern. Members inviting their friends to join remain one of the company's most important sources of new growth. "Our success is also a reflection of the solid value we offer consumers, who come to us to buy top designer brand fashions and accessories at prices up to 70% off retail."

The limited-time, first-come, first-served nature of Beyond the Rack's designer events also makes the shopping experience exciting and very immediate. To-date, Beyond the Rack has offered merchandise from more than 500 renowned designer brands.

The site launches up to eight new sales events every day, treating its members to a continuously fresh selection of apparel and accessories. Each event lasts only two days, and members typically flock to the site when the new events launch at 11:00AM EST, to get first choice of the discounts.

About Beyond the Rack

Beyond the Rack is North America's premier private sale shopping club, serving members throughout the United States, Canada, and many countries around the world. Through its Website — beyondtherack.com — the company sells top designer brand fashions and accessories at prices up to 70% off retail. Merchandise is made available to members in the context of two-day, first-come, first-served events. Privately held, with headquarters and operations based in Montreal, Beyond the Rack currently has a staff of 75 full-time permanent employees.

SOURCE Beyond the Rack