Vintage online retailer ModCloth
has closed a $25 million round of funding that will support company expansion and major hiring at Modcloth's three locations in Pittsburgh, Los Angeles and San Francisco.
The Pittsburgh location will hire 84 people alone this year.
"In practical terms, the round is going to translate into large investments in inventory, infrastructure, and the team," reports Eric Kroger who cofounded the company with his now wife, Susan, when they were high school sweethearts living in Pittsburgh. The couple moved to San Francisco when they expanded the company to the West Coast the summer of 2010.
"In Pittsburgh, that pretty directly translates into roughly two dozen new technology and merchandising team hires, as well as over 60 new customer care and fulfillment team hires we hope to make this year," he adds.
The funding round was led by Palo-Alto, Calif.-based Norwest Venture Partners. Existing investors, led by Accel Partners, also participated in the round. In addition, Josh Goldman of NVP will join the board with members Theresia Gouw Ranzetta of Accel, Josh Kopelman of First Round Capital, Ann Miura-Ko of Floodgate, and co-founders Eric Koger and Susan Gregg Koger.
The Krogers launched the company the summer before they attended CMU in 2002. Modcloth has since gained national attention for their success in empowering their community of shoppers through a social commerce platform that generates customer feedback and sales.
The company was named "America's Fastest Growing Retailer" in 2010 by Inc Magazine. Since then, ModCloth has grown to nearly 300 employees across its three locations. Last year, ModCloth consolidated its fulfillment center and office in Pittsburgh to a 146,000 square foot space in Crafton, Pennsylvania.
The online retailer also plans to grow its team in its San Francisco headquarters and Los Angeles locations.
Source: Eric Kroger, ModCloth
Writer: Deb Smit
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