Online fashion retailer FClub has closed a $30m series B round led by venture firm Investor Growth Capital, with participation from SK Capital and previous backers Zero2IPO Capital and IDG Capital Partners, the corporate venturing unit of International Data Group.
Also known as the Still Together Network, the China-based company has raised $40m in venture funding. Its series A round in April last year raised $10m, which saw investment from IDG and Zero2IPO Capital, the venture arm of Zero2IPO Group.
The company uses an online model called “flash sales”. Essentially, the website offers a range of branded clothing that go on sale at 10 am each day, and sell on a first-come, first-served basis. The firm has 500 employees, and claims to have over 2 million users, of whom 400k are active.
The flash sales model has proved successful for growth of online retailers in China. VIPShop, which operates a similar strategy, listed on the New York Stock Exchange in March this year.
CEO Ben Cattle Lee said: “The flash sales model itself has many competitive advantages, the market potential is huge, Still Together Network has a large advantage in the supply chain, and strict control of operating costs and marketing expenses, and corporate past. The recognition of the healthy development of the capital side, the financing for Still Together Network not only gets a huge amount of money, but a great benefit to the development of the rich experience and global vision of the investment institutions interested in enterprise. Next, Still Together Network will optimize and upgrade the system of warehousing and logistics, after-sales service process and user shopping experience.”