TOTSY Raises $5 Million Series A
TOTSY is a private sales website made for moms of younger children. The website has raised $5 million in Series A funding from DFJ Gotham and Rho Ventures. TOTSY recently acquired the member base of their competitor bTrendie. Below is the full press release:
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
TOTSY Closes $5 Million Series A Funding
Financing from DFJ Gotham and Rho Ventures will support expansion and solidify TOTSY’s leadership in online private sales for parents, babies and kids
NEW YORK, Nov. 30, 2010 /PRNewswire/ — TOTSY (http://www.totsy.com), the private sale site exclusively dedicated to delivering deals on coveted must-haves for moms and children, announced today the close of its Series A round of financing. The $5 million round was led by DFJ Gotham and Rho Ventures.
Within just one year of launch, TOTSY has emerged as the dominant player serving the moms, babies and kids verticals in the online private sales. TOTSY’s strong performance and speedy customer acquisition exemplify high demand for its offering and verify that parents are eager to purchase top quality products for the family through the increasingly popular private sale model. Influential venture capital firms DFJ Gotham and Rho Ventures are backing TOTSY to fuel continued expansion of market share. The Series A follows TOTSY’s recent acquisition of competitor bTrendie’s member base, which secured TOTSY as the leading private sale site dedicated to kids and parents in the U.S.
“As the private sale channel continues to transform the retail industry, TOTSY has demonstrated its leadership in the children’s products category,” commented Danny Schultz, Managing Director at DFJ Gotham Ventures and a member of TOTSY’s Board of Directors. “TOTSY has generated tremendous customer growth since its inception, a testament to the team’s expertise and their innovative offering for both brands and TOTSY’s loyal customers. We look forward to helping them accelerate their growth and dominate the space.”
The private sale site category has achieved striking success in the US and globally in recent years, with leading domestic players such as Gilt Groupe (http://www.gilt.com) and Rue La La (http://www.ruelala.com) collectively expected to bring in over $600 million in 2010. Vente-Privee (http://www.vente-privee.com), category originator and French private sale site launched in 2001, is rumored to have posted nearly $1 billion in gross global sales in 2009.
“The parent market in the U.S. has been growing steadily over recent years and offers one of the most powerful growth opportunities for the retail industry. Our sales and vendor sentiment at the recent ABC Kids Expo overwhelmingly confirm that TOTSY’s online private sale distribution channel answers an urgent need for both our partner brands and American families. This funding will help us to meet this demand as quickly as possible,” commented Guillaume Gauthereau, Co-founder and CEO of TOTSY.
Christophe Garnier, Co-founder, President and CMO of TOTSY states, “We welcome the addition of such respected investors to our team and look forward to applying this financing to develop and execute strategic deals that will continue to drive TOTSY’s rapid growth.”
Headquartered in New York, TOTSY is a privately held company dedicated to providing its members with access to coveted and essential products and brands designed for expecting moms, parents, babies and kids at sample sale prices. Shopping events are designer-specific and held over a 72 hour period. Membership is free of charge and by invitation only. For more information, please visit www.totsy.com.
About DFJ Gotham
DFJ Gotham Ventures is an early-stage venture capital firm based in New York City focused primarily on digital and social media, financial technology, e-commerce, mobile and infrastructure startups. DFJ Gotham Ventures partners with extraordinary teams of entrepreneurs to build strong and successful businesses that make a huge impact in their industries. A member of the DFJ network of funds, DFJ Gotham Ventures takes pride in being an active partner, leveraging its experience, knowledge and relationships to provide substantial value to its portfolio companies. For more information, please visit www.dfjgotham.com.
About Rho Ventures
For nearly 30 years, Rho Ventures has been investing in leading edge, high growth companies at multiple stages of growth spanning early, venture-stage investments to later stage, growth equity transactions. Rho has participated in the growth of some of today’s most innovative and successful companies, including Ciena, Capstone Turbine, Compaq Computer, EverdayHealth, Intralinks, iVillage, ReachLocal, Tacoda, Tripod, and Yantra. Rho Ventures is currently investing from Rho Ventures VI, a $510 million fund. The firm has offices in New York City, Palo Alto and Montreal, with investments across the globe. For more information, please visit www.rho.com.