Secret Sales secures $10m funding to fuel expansion in Europe

Online non-full price fashion and beauty marketplace Secret Sales has raised $10 million in new series B funding to help accelerate its expansion in Europe.

The new backing comes from the same investors which led the company’s last funding round in June 2021, including Perwyn, a European private equity investor, Belerion Capital, an e-commerce investment specialist and early stage investor in ASOS, The Hut Group, Boohoo, and Big Ideas Group, a team of growth-stage investors.

Secret Sales will use the funds to elevate its marketplace technology, which, as of February 2023, has cultivated an inventory of 25 million items with a combined value of £3 billion – an increase of 125% year-on-year.

The investment will fuel the company’s ambitious international strategy as it aims to establish itself as the "go-to" destination for non-full price retail in all main European markets by 2025. 

Chris Griffins, CEO of Secret Sales, said: “With the current economic climate still uncertain, and the funding market particularly tricky to predict, we are extremely proud of our success in this series B funding. The confidence of our existing investors is testament to the incredible results we have achieved during this past year, showing that there is significant reason and opportunity to invest in the Secret Sales business model worldwide.

“The ongoing demand from brands and retailers looking for an upmarket, profitable, and sustainable way to sell non-full price inventory has accelerated and we are fast becoming the only real 360-degree solution. We’re thrilled to have closed this funding round as it enables us to embark upon the next stage of our growth journey.”

The recent launches of the Secret Sales business in Belgium and the Netherlands have already resulted in growth, accounting for 1,129 new brands and over £400 million in live inventory in less than a year. By placing its focus on 12 additional European territories, Secret Sales aims to replicate that success with each new expansion.

Ravi Sharma, Partner at Perwyn, commented: “Since leading the investment rounds in Secret Sales, we have been hugely impressed by the team and their progress. The company has built an online marketplace that works in partnership with brands and retailers, and is fast becoming a true disruptor in its sector.

“It is achieving this with its modern platform that puts ‘brand’ first in the exciting non-full price space. We will continue to support the business as it seeks to expand its operations more widely across Europe.”

Chris Griffin and Matt Purt acquired Secret Sales in March 2020, relaunching the former members-only flash sales site as a dedicated marketplace. Former boss of ASOS, Nick Beighton, joined the company as Chairman in June 2022.

Angus Duthie-Jackson from Perwyn will join the board of Secret Sales as part of the funding round.

Listen to TheIndustry.fashion's podcast with the CEO of Secret Sales, Chris Griffin.