Despite its humble beginnings as an eBay store, Nasty Gal has been big business for a number of years now. So much so that it looks like they’ve caught the eye of some big-name investors — including Urban Outfitters. Could a possible buyout be in the works?
In a recent New York Times profile of 28-year-old NastyGal founder Sophia Amoruso, the web entrepreneur let slip that a possible buyout from Urban Outfitters could be in the works. According to the NYT:
Urban Outfitters recently contacted Ms. Amoruso about a potential acquisition, according to people briefed on the discussions. Asked about that, Ms. Amoruso said only, “We’re talking."
It’s a deal that could make sense for both parties. Nasty Gal could give Urban Outfitters a little street cred, and UP could give the fledgling e-retailer the kind of money, support and infrastructure that only a major corporation can. Although Nasty Gal isn't exactly hurting for money: Last year, the e-commerce site made nearly $128 million in sales and netted close to $100 million. Amoruso also raised close to $50 million from Index Ventures, which had invested in e-commerce sites like Net-a-Porter, Etsy and Asos.
In other words, Amoruso is rolling in it. And, considering her success so far, she certainly knows how to play her cards right all on her own. A shrewd businesswoman, Amoruso spoke of the disconnect between women-run fashion tech startups and the predominantly male venture capitalists she met with, before striking a deal with Index.
“I don’t think they got it,” she said. “It’s this bunch of guys sitting around saying, ‘Oh, yeah, let’s start a Web site and put Kim Kardashian’s face on it.’” [via Fashionista]
So I suppose we’ll have to wait and see if Urban Outfitters “gets it.” I think a potential buyout could be really good for Nasty Gal, and if it means that I'll be able to try on Nasty Gal pieces without having to wait for them to arrive in the mail, I'm all for it.
What do you think of this potential buy out, Lovelies? Are you surprised?