Invitations to online sales of last year’s luxury goods are a hot category right now — witness Kleiner Perkin’s investment today, amount undisclosed, in a purveyor of home decor called One Kings Lane.
Ideeli, however, has been in business for over two years, has 1.3 million members and expects to do over $100 million in revenue next year selling heavily discounted designer clothes, according to co-founder and CEO Paul Hurley. Ideeli will also be opening a home business soon to compete with One Kings Lane.
Scale matters in online sales, Hurley said, and so far there are three startups in the luxury category that are significantly bigger than the others — Gilt (raised $48 million, according to Thomson Reuters), RueLaLa (sold in October to GSI Commerce for $350 million) and Ideeli, which has now raised around $30 million.
Ideeli’s membership is almost 100 percent female, and this round, a Series B, was led by two women VCs — Laura Sachar of StarVest Partners and Liza Boyd of Constellation Growth Capital, who said in a statement that she thinks Ideeli could become “one of the leading e-commerce companies in the world.”
Hurley said the money is for working capital and will be used to add brands, hire employees and make Ideeli’s audience bigger. An IPO would be “a hope,” he said, but he’s maintaining a healthy sense of paranoia.