VIP website raises Euro 7 million

BuyVIP, a pan-European e-commerce website raised Euro 7 million in a second round funding led by 3i plc of London. Other investors included the European Founders Fund, angel investor Michael Kleindl and MCI (Molins Capital inversión SCR. SA).

BuyVIP is a closed community, which members join by personal referral. Limited stocks of famous brand lifestyle and fashion products are offered at discount prices through fixed period sales campaigns.

The business, founded in Madrid in 2006, launched its German website in the same year and set up an Italian site in early 2007. The company claims it is the leading pan-European e-commerce community, having attracted 500,000 members to date and growing by 70,000 per month.

Christian Siegele, Partner at 3i Germany, “Founders Gustavo Garcia and Gerald Heydenreich have successfully proven the growth potential of their idea and have created an impressive business very rapidly. The business model enables manufacturers to reach their target group via controlled and exclusive campaigns. The growth of the large German market will be a particular focus for the business in the future.”

Gustavo Garcia, CEO of BuyVIP said, “Now, we can approach even more luxury brands with our business proposition and strengthen our consumer marketing.”

The products on offer at BuyVIP are generally limited-edition items, ones not available in speciality shops in Germany, or off-season products or stock-overs. The site offers discounts of 30 to 70 per cent below the retail sales price. BuyVIP also serves as a platform for the launch of new brands and products. Registered members have the chance to test new products and provide feedback to businesses prior to launch.