Secret Sales, the leading premium non-full price marketplace for fashion, sportswear and beauty brands, has raised $10m in funding from a group of well established investors to help accelerate its journey towards becoming Europe’s largest marketplace for non-full price fashion.
The announcement comes two years after the company’s first round of funding, which raised €10m in June 2021. Encouraged by the rapid growth of the business, and its innovative, tech-led approach to non-full price stock sales, the same group of investors chose to lead the Series B round. These include Perwyn, the European private equity investor; Belerion Capital, the e-commerce investment specialist and early-stage investor in ASOS, The Hut Group and Boohoo; and Big Ideas Group, the team of innovators seeking investments in exciting, growth-stage companies.
Secret Sales will use the funds 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 – an increase of 125 per cent year-on-year. This elevation will fuel the company’s ambitious international strategy, acting as a catalyst for it to establish itself as the go-to destination for non-full price retail in all main European markets by 2025. The recent launches of the business in Belgium and the Netherlands have already resulted in impressive growth, accounting for 1,129 new brands and over £400 million in live inventory in less than a year. By placing its focus on 12 additional European territories, Secret Sales aims to replicate this success with each new expansion.
Chris Griffins, CEO 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.”
Secret Sales is a unique marketplace for brands and retailers looking to sell their non-full price inventory profitably, while simultaneously tackling the fundamental waste and sustainability issues at the core of the fashion industry. Unlike other platforms in this space, Secret Sales gives brands full control, ensuring their surplus stock is displayed, priced, and delivered in line with their bespoke preference and direction, thereby guaranteeing full retention of their reputation and eliminating any chance of brand erosion. By taking an agile, tech-led approach, the platform offers integrated back-and-front-end interfaces to allow brands and retailers to connect directly with consumers and scale selling with ease. With partner growth increasing 104 per cent year-on-year – and the inclusion of premium names such as Dolce & Gabbana, Monnier Paris, PUMA, and Kurt Geiger – Secret Sales is well-positioned to continue its expansion and enhance its offering to brands, retailers, and customers alike.
Iain McDonald, founder of Belerion Capital Group, and non-executive director at Boohoo and The Hut Group, said “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.”
Ravi Sharma, Partner, Perwyn said “Since leading the investment rounds in Secret Sales we have been hugely impressed by the team and their progress. The company has built an online marketplace that works in partnership with brands and retailers, and is fast becoming a true disruptor in its sector. It is achieving this with its modern platform that puts ‘brand’ first in the exciting non-full price space. We will continue to support the business as it seeks to expand its operations more widely across Europe.”
Chris Griffin and Matt Purt, acquired Secret Sales in March 2020, relaunching the former members-only flash sales site as a dedicated marketplace.
Angus Duthie-Jackson from Perwyn will join the Board of Secret Sales as part of this funding round.