Gilt Groupe's IPO Could Be a Sign for E-Commerce Companies
In a sign that IPO activity in the e-commerce space could be coming back after a long slow period, the online luxury goods retailer Gilt Groupe will be going public sometime this year, a company insider told Re/code.
The source told Re/code that the New York City-based company's initial public offering will take place during the third quarter of 2014.
Bloomberg reported that Goldman Sachs is managing the company's IPO. The financial services firm invested $138 million in Gilt in 2011, contributing to the $200 million in funding Gilt has received since its 2007 launch.
Few e-commerce companies have gone public in recent years, in part because of the growing dominance of Amazon in the space, according to Bloomberg. Zulily, a shopping site for mothers, was seen as an exception when it went public last year.
Gilt Groupe "is in a good place, and the market is a good place," the anonymous source told Re/code. "That doesn't happen very often."
Gilt, which hosts flash sales of luxury designer clothing, generated more than $550 million in sales in 2012, up from $450 million the previous year. Revenue figures for 2013 were not available, but Re/code reports that the company was not profitable for the year.
After expanding its following, Gilt launched a full-priced men's business line, a food section, and a separate travel site. Those ventures failed, and Gilt cut 10 percent of its staff in early 2012 and focused on its flagship business of discounted designer goods, Re/code reports.