Montréal, November 26, 2013 – Élaine Zakaïb, Minister for Industrial Policy and the Banque de développement économique du Québec, announced today that Investissement Québec has entered into an agreement involving an $8-million equity investment in Beyond the Rack, a Montréal-based firm that is recognized as an industry leader in Canadian e-commerce.
This round of funding, in support of the company's longer-term growth plans, totals $25 million and includes other partners, such as Iris Capital and Tandem Expansion Fund. The current investors—Highland Capital Partners, Panorama Capital, BDC Venture Capital IT Fund and iNovia Capital—also contributed to the equity investment.
"The e-commerce market is growing in leaps and bounds, in Québec and in the rest of the world. Beyond the Rack is a prominent economic driver that’s contributing to this industry's vitality," emphasized Élaine Zakaïb. "We're proud to support such a promising firm that’s growing, creating jobs and building prosperity in Québec."
Founded in 2009 by Yona Shtern and Robert Gold, Beyond the Rack specializes in selling merchandise online through members-only flash sales. It offers its 10 million customers an attractive range of designer clothes as well as home accessories and kitchenware at prices as much as 80% below retail. With only four employees at start-up, the company now boasts a permanent workforce of 440, 332 of whom are employed at its Montréal head office in the borough of Saint-Laurent.
"This new funding round will enable us to pursue our ambitions. We want to develop a private brand and invest in improving our performance, especially in terms of logistics and diversification of our client base," explained Yona Shtern, President and co-founder of Beyond the Rack.
About Investissement Québec
Investissement Québec’s mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.
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Office of the Minister for Industrial Policy and the Banque de développement économique du Québec
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