TPS Shopping Outlet, the company that runs online designer-brands store, ThePrivateSales.com has raised $5 million (around Rs 22.44 crore) from a group of five investing companies, reports Livemint. The company didn’t disclose the name of the investors. It intends to use the funding to add more product categories and brand, and start another website featuring discount deals from luxury fashion brands.
The site currently offers clothes and accessories from 140 brands including the likes of Hugo Boss, Ralph Lauren, Esprit, Nautica and Gucci, and plans to add 300-400 new brands. It claims to have 400,000 registered members, out of whom 47% have transacted. Just like other such ventures, the site offers referral discounts to members.
The company itself was incorporated in May 2010, according to filings with India’s Registrar of Companies; according to other documents filed, it took a loan of Rs 1 crore from Delhi based entity Nextwave Communications Pvt. Limited on 24th March 2011. A search for Nextwave reveals that it also owns 23.65% shares in telecom company HFCL, as on 31st March 2011.
Recently, a similar venture, 99Labels raised $3.5 million from Info Edge, to facilitate sourcing from international brands. The exclusive brand-sales segment is gathering momentum with more players coming on-board, and is seeing further diversification with the entry of niche players like fetise.com, which focuses on luxury brands for men.
The business depends a lot on the ability of the venture to source good products from premium brands, and this is also the single most differentiator in the segment. Although, offering payment options like Cash-On-Delivery were being touted as another factor, most ventures seem to be implementing it sooner or later. Other sites that offer designer brand sales include 99labels, fasionandyou, bagittoday, among others.