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This article was published on November 26, 2008

    Shopping clubs are hot: Brands4friends.de raises €10M

    Shopping clubs are hot: Brands4friends.de raises €10M
    Ernst-Jan Pfauth
    Story by

    Ernst-Jan Pfauth

    Ernst-Jan Pfauth is the former Editor in Chief of Internet at NRC Handelsblad, as well as an acclaimed technology author and columnist. He a Ernst-Jan Pfauth is the former Editor in Chief of Internet at NRC Handelsblad, as well as an acclaimed technology author and columnist. He also served as The Next Web’s blog’s first blogger and Editor in Chief, back in 2008. At De Correspondent, Ernst-Jan serves as publisher, fostering the expansion of the platform.

    German shopping club Brands4Friends.de has raised a €10 million round of funding. It’s their series C, led by Partech International. Some old friends from previous rounds joined them: Mangrove Capital Partners and Holtzbrinck Ventures both chipped in. In these rough economic times, such a large boost in an ecommerce site is quit spectacular.

    Yet when you read Brands4Friends’ story, the financial backing makes complete sense.

    brands4friends - Marken zum FreundschaftspreisMaybe it’s the concept of a shopping club that does it. Fashion victims still want to spice up their outfits with designer brands, yet for a bargain price. Clubs like Brands4Friends, French Vente-privee.com, and Russian KupiVIP.ru are invite only. As soon as you’re among the club of happy spenders, a world of deluxe sales opens up for you. From grand cru wines to a Hermes bag, you can get it for a special, really special price. KupiVIPR.ru recently got a multi million financial boost too.

    Brands4friends.de launched in September 2007 and already has 1.2 million online club members – adding 10k users every day. Its current annual revenue run rate is €30 million. I’d say: join the club and start a shopping club for your own country. Successful examples enough.