Etailz secures $25 million in new financing to develop new products, expand portfolio
Fri., Feb. 21, 2020
Etailz announced Thursday it secured $25 million in debt financing to develop new products, expand inventory and grow retail partnerships.
The new round of financing will specifically allow the Spokane Valley-based company – which partners with third-party sellers to grow their brands on Amazon, eBay and Walmart – to improve its proprietary software that discovers product trends, identifies new distributors and optimizes price positioning decisions.
“Our vision is to create a one-stop-shop for brands to build their businesses online,” said Kunal Chopra, CEO of etailz.
The debt round, financed by Encina Business Credit, comes as Trans World Entertainment, the parent company of etailz, announced a $10 million sale Thursday of its For Your Entertainment segment to a subsidiary of Sunrise Records and Entertainment.
Trans World indicated in a company statement that its sole focus is supporting the growth of etailz.
“The sale of our FYE segment has put our stores and employees in the best position to continue forward and build upon an almost 50-year legacy,” Michael Feurer, CEO of Trans World Entertainment said in a statement. “With respect to etailz, we believe marketplace selling, technology, and advertising have never been more important to global retailing.”
Etailz was founded in 2008 by Gonzaga University graduate Josh Neblett, his wife, Sarah, and angel investor Tom Simpson.
Trans World Entertainment, a publicly traded company, acquired etailz in 2016 for $75 million. Etailz relocated to its 40,000-square-foot Spokane Valley headquarters in 2018.
Etailz, which has more than 160 employees, cut 20% of its staff in January 2019 after Trans World reported $14 million in losses.
Chopra, who has executive experience with Microsoft, Amazon and Groupon, assumed the role of CEO for the company after Neblett resigned last March.
Trans World reported $28.6 million in revenue for etailz during the third quarter in 2019, down from $44.1 million in the third quarter of 2018, according to SEC filings.
Chopra anticipates it will be a year of rapid growth for etailz with a new product launch in the pipeline and plans to hire additional marketing and sales employees.
“I suspect that trend is going to continue in the future and it is great for us,” he said, adding the market is fragmented with an abundance of services geared towards third-party sellers. “Our goal is to make sense of this fragmented market and bring it into a one-stop-shop.”
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