Well, That was Quick: Gilt Groupe Gets $138M

NEW YORK, May 9 (Reuters) – Gilt Groupe Inc, the online shopping website known for its flash deals, raised $138 million in new funding giving it a valuation of over $1 billion, according to a source with knowledge of the deal.

The company it plans to use the new money for acquisitions, new product launches, and the acceleration of growth in its existing categories. Earlier, peHUB reported the company was planning to raise $138 million.

Softbank Group invested $62.5 million. In addition, Softbank is funding a 50-50 joint venture for Gilt Groupe Japan for an undisclosed sum.

Other investors in this round provided $75.5 million for Gilt’s U.S. operations, including General Atlantic and Matrix Partners, which provided prior funding. Goldman Sachs, New Enterprise Associates, Draper Fisher Jurvetson Growth, Pinnacle Ventures, TriplePoint Capital and Eastward Capital, represent new investors.

Founded in November 2007, Gilt Groupe has secured over $240 million in total financing.

Gilt Groupe has about 3.5 million members and 1 million monthly shoppers.

(Reporting by Jennifer Saba; Editing by Derek Caney)