Japan-based telecommunications, internet and media conglomerate Softbank has invested $62.5m as part of the $138m round for Gilt Groupe, a US-based online retailer of consumer goods.
In addition, Softbank is providing Gilt Groupe Japan, which started in March 2009 and has more than 600,000 members, with cash, services and intangible property to establish a joint venture between the two companies in return for a 50% stake.
Masayoshi Son, executive chairman of Softbank, said: "I am very excited to see further expansion of Gilt’s offerings to Japanese customers. With our Internet technology and Gilt’s innovative service, we look forward to working together to bring the Japanese market to a new stage of online shopping."
Venture capital (VC) firms General Atlantic and Matrix Partners reinvested as part of the consortium providing the other $75.5m in Gilt Groupe’s round. The other, new investors were investment bank Goldman Sachs and VC firms New Enterprise Associates, Draper Fisher Jurvetson Growth, Pinnacle Ventures, TriplePoint Capital and Eastward Capital.
Kevin Ryan, founder and chief executive of Gilt Groupe, said: "We continue to expand into additional categories as well as make strategic acquisitions to complement existing business lines."
In the next several months Gilt will launch a gourmet food site as well as a full-price men’s online retail store having started in 2007 as an invitation-only site for women’s clothing and accessories.
Gilt Groupe has raised more than $240m in total since 2007.