Montreal ecommerce retailer Beyond the Rack has just announced that it has secured $10 million in debt financing from Silicon Valley Bank. A facility is an agreement to advance money to a company in order to accomplish a specific activity.They essentially received a loan.
BTR plans to dedicate the funds to marketing and to expanding Beyond the Rack’s product offering. Thus far, Beyond The Rack has raised almost $80 million since launching in 2009. Despite their growth and their 13 million subscribers, they have yet to turn a profit.
Nearly 40% of Beyond the Rack’s sales come from purchases made on mobile devices and with average mobile orders topping $170 versus $100 from desktop orders, BTR is investing heavily in mobile and betting that mobile orders will surpass desktop orders rather soon. Time will tell whether this new round of financing and investments in mobile will lead to a path of profitability.
Here is the official Press Release:
Beyond the Rack, – Canada’s Leading Online E-Commerce Platform – Closes US$10 million Facility with Silicon Valley Bank
MONTREAL, Oct. 1, 2014 /CNW/ — Beyond the Rack (BTR) announced that it recently closed a US$10 million debt and banking facility with Silicon Valley Bank (SVB) – a leading provider of finance and banking services to high-growth technology companies in North America.
Beyond the Rack is Canada’s leading e-commerce destination, offering a broad array of well-know consumer brands at discounts up to 80% off of traditional retail prices in categories, including: ladies and men’s fashions, home and decor, consumer electronics, furniture, footwear, children’s toys and apparel, accessories and much more. Its namesake flash sale website features over 180 new sales events weekly, and launches 8,000 new items every day.
“We are delighted to announce this funding from SVB which will allow us to continue to invest in our long-term growth,” said Yona Shtern, co-founder and CEO of Beyond the Rack. “It’s particularly exciting to work with a financial partner that shares our vision for the opportunity we see in the rapid expansion of e-commerce in Canada and the role BTR will play as a primary consumer destination, media platform and logistics network.”
The company has attracted over 13 million consumer members across Canada and the United States and 5,000 brand partners since first launching in 2009.
“Beyond the Rack has quickly established itself as a consumer-focused, market leader, said Win Bear, managing director, of Silicon Valley Bank. “We are excited to work with the company as it enters the next phase of its evolution and it continues to distinguish itself by its operational expertise and capacity to scale and execute.”
About Beyond the Rack
Beyond the Rack, North America’s premier online shopping club, offers its 13 million members the most sought-after designer brand apparel, accessories, beauty, and home decor products at up to 80% off retail. Products are sold in the context of two-day, first-come, first-served, limited-quantity events. Members can expect up to 30 new events each day. The privately held company has offices in Montreal, Toronto, New York and Las Vegas.
About Silicon Valley Bank
Banking the world’s most innovative companies and exclusive wineries, SVB offers diverse financial services, knowledge, global networks, and world class service to increase our clients’ probability of success. With more than $33 billion in assets and more than 1,700 employees, we provide commercial, international and private banking through our locations around the world. Forbes Magazine ranks us among America’s Best Banks and Fortune named SVB one of the best places to work. (Nasdaq: SIVB) www.svb.com.
