Montreal’s Beyond the Rack, an online shopping club has been on the hunt for several weeks now for a company it would like to aquire.
You see, BTR recently closed a $36.6 million round of financing. One of the things it may do with that money is to acquire a smaller e-commerce firm that is offering services complementary it. BTR specializes in discounted high-end men’s and women’s fashion, and home accessories.
In a recent chat, co-CEO Yona Shtern said the company will also use its financing to improve customer delivery times. Many people who have ordered from BTR, including myself, have noticed that it takes a really long time to receive the items you have bought. Shtern says the company is getting better, and will deliver on a promise to deliver within two weeks time.
“We’re shipping close to 9,000 packages a day,” Shtern said. “We have to make some significant investment on infrastructure to support further growth and to find efficiencies.”
He explained that the biggest shipping headache for the company has been shoes.
“Shoes have been the most difficult category for us, because most shoes come from the West Coast of the U.S., so that adds 10 days, and shoes are notoriously difficult to handle,” he said.
While BTR is looking to buy, it’s also looking to be bought. Shtern said there is a very real possibility the company will be listed for an initial public offering in the near future.
He said as a venture backed company, he has to look at the possibility of getting his investors a nice return on their investment, but for the moment, the company’s immediate concern is to execute its business plan, especially since the IPO market has not been a terribly lucrative one recently. Just ask Groupon.
BTR has about $160 million in annual revenue , and is on pace to reach $200 million by next year. There are currently about 340 employees, and 6 million members. That’s triple the annual revenue the company reported last January, double the number of members and about 100 more employees.
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