Nasty Gal receives a $40 million investment
The Los Angeles fashion site Nasty Gal has raised $40 million from its one and still only investor, Index Ventures. The venture firm had previously invested $9 million.
I told the story of Nasty Gal’s incredible rise this June. The company is on its way to quadrupling sales this year to $128 million, racking up gross margins of more than 60%, up there with retail’s most profitable ventures. Nasty Gal’s founder, Sophia Amoruso has done this with next to no marketing other than a constant stream of updates and artful product photos on Facebook, Twitter, and Instagram.
Her shoppers are very loyal. A quarter of Nasty Gal’s 250,000 customers visit the site once a day for at least seven minutes. The top 10% visit the site more than 100 times a month.
Amoruso is planning on using the funds to expand Nasty Gal’s physical space (a 500,000 square foot fulfillment center and 50,000 square foot headquarters). She also might consider acquisitions “to speed up new products”. The funds will go toward hiring, too. Nasty Gal has 30 open job positions now, and plans to hire 100 people within the next year. “Our org chart is outdated every five seconds,” Amoruso says.
She wouldn’t discuss how this latest round values the company. She did point out she still owns a majority of Nasty Gal’s shares.
This version submitted by howmania