• Totsy

  Led · Debt Financing · May 2013

  Totsy operates a private-sale website exclusively dedicated to delivering deals on products for parents, babies and kids. The site curates discounted merchandise through private sales aimed at parents and caregivers. CEO Lisa Kennedy said the new financing will help fuel Totsy’s next phase of growth. Salus Capital Partners provided an $8 million senior secured term loan to refinance existing indebtedness and for general corporate purposes. Salus characterized the loan as part of its niche lending focus on consumer-facing e-commerce companies and noted it is working with Totsy and the company’s committed equity sponsor. Choate, Hall & Stewart LLP acted as legal counsel to Salus Capital on the transaction. Totsy operates an invite-only flash-sales marketplace that runs 72-hour, brand-specific shopping events offering heavily discounted prenatal, baby and children’s products. The site operates on a consignment model, working with over 4,000 brands and featuring roughly 500–600 brands each month. Since launching in 2009 the company has grown to a team of more than 110 employees and serves over 3 million moms. Totsy complements sales with editorial content from mom bloggers to build community and trust among parents. Management emphasizes an Eco-friendly mission and plans to expand strategic industry relationships while continuing to grow its user base. Financially the company reported strong year-over-year revenue growth of 125% and aims to reach profitability by 2013. Totsy is a members-only flash sales site targeting moms of kids aged 0–7 and moms-to-be, selling prenatal care products, baby gear, travel accessories, children’s clothing and toys. The company runs designer-specific, limited-time shopping events—48 to 72 hours long—offering brand-specific sales at sample-sale prices, often up to 70% off retail. Totsy recently acquired competitor bTrendie’s member base, a move reported as part of its growth. The startup emphasizes eco-friendly operations and plants trees in the names of members’ children. Financially, Totsy has raised $5 million in a Series A round from DFJ Gotham and Rho Ventures. The business follows the niche flash-sales model popularized by Vente‑Privée, Gilt Groupe and Rue La La.

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