Fashion Start-up Nasty Gal Raises $40M
Online fashion retailer Nasty Gal announced a staggering $40 million Series B funding round from its sole investor, Index Ventures.
Nasty Gal (the no. 11 on this year’s Inc. 500 list) will use the sufficient funds for new hires, an expanded headquarters and fulfillment center, and potential acquisitions “to speed up new products” company founder Sophia Amoruso told Forbes. The company, founded in 2006, has seen massive growth in the past three years--a 10,160% increase in revenue.
With more than 250,000 shoppers across the globe, Amoruso and Nasty Gal have become a household name in vintage clothing and online shopping. Starting out by simply selling vintage goods on eBay, Amoruso built her online shopping site using little more than social media, attractive models, and a mandate to always sell items for more than she paid for.
"You can turn (an item) into the most covetable piece of vintage because you put it on a girl…who’s showing you how to wear it, having an attitude that’s approachable but still sexy, friendly and cool," she told Inc. earlier this year. "There, you have this whole fantasy from this piece that probably started in a plastic bag in the backroom of a thrift store.”
Index Ventures, an established venture firm with more than 100 investments, has fueled successful startup giants like Facebook, Dropbox, and Moleskin.
As Nasty Gal reportedly racks gross margins up to 60% and sales up to $128 million this year, it seems poised to give more established retail outlets a run for their money. And even with a massive benefactor looming over her company’s shoulders, Amoruso told Forbes that she still the primary shareholder of Nasty Gal.