Urban Outfitters to Buy Nasty Gal?
Despite its tongue and cheek name and 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.
In yesterday's 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 would give Urban Outfitters some street cred, and Urban would give the fledgling e-retailer the kind of money, support, and infrastructure that only a major corporation can.
Not that Nasty Gal is 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.’ ”
We'll have to wait and see if Urban Outfitters "gets it."
We've reach out to Urban for comment and will report back.
