Totsy’s Flash Sales Soar

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The NY-based e-commerce site Totsy holds “flash sales” of merchandise for parents and children. According to Xconomy, since late 2010, the company’s revenues have risen 3,000 percent and the number of brands on their site has gone from 96 to 500.

CEO Guillaume Gauthereau said that they initially targeted mothers, with a 70 to 80 percent concentration on apparel. Through their relationship with VC firm DFJ Gotham Ventures, Totsy works with other companies like StellaService, which benchmarks consumer service practices. They also use SailThru, an e-mail marketing platform that reacts to behavior.

Daniel Shultz, co-founder of DFJ Gotham, is on Totsy’s board of directors and an advisor to Gauthereau. He told Xconomy that his firm not only invests in sites like Totsy but also e-commerce infrastructure and that enhance the performance of sites and create better customer conversion. His firm is also looking for companies that can aggregate and package large amounts of consumer data.

Shultz said that they funded Totsy because the flash sales idea was unique and liked the idea of selling to moms and kids. In that space, Shultz said the returns are minimal. If something doesn’t fit quite right, moms figure their child will just grow into it.

In 2010, Totsy raised $5 million in Series A funding from Rho Ventures and DFJ Gotham Ventures. Sources say it’s currently raising additional funding.

Xconomy