RealTime IT News

PETsMART.com Obtains $50 Million in Second-Round Financing

Internet pet supply retailer PETsMART.com said it has secured second-round venture capital funding in excess of $50 million.

The financing commitment was provided by real-world retailer PETsMART Inc. and by the company's initial outside investors, including idealab!, idealab Capital Partners and Global Retail Partners, in addition to new investor Big Dog Holdings Inc.

Big Dog, a developer, marketer and retailer of branded lifestyle consumer products, and PETsMART.com announced an exclusive partnership earlier this month.

PETsMART.com said it will use the financing to accelerate its national marketing programs and for continued site development.

Through its partnership with PETsMART Inc., a brick and mortar pet supply retailer in the U.S., PETsMART.com said it operates as a virtual company "unburdened from investing in inventory, distribution centers and other overhead costs that its competitors must bear."

"This financing will provide us the resources to embark on an aggressive marketing campaign" said Tom McGovern, president and CEO of PETsMART.com.

Marketing efforts for PETsSMART.com will build on the existing PETsMART brand, driving awareness and traffic for the Internet site through TV, radio, print and outdoor advertising campaigns. The first spot in the TV campaign broke Sept. 12 during the Emmy Awards telecast.

In-store events and promotions are planned with PETsMART stores nationwide, as are continued cross-promotions with partners, including Kodak, Big Dog and Rodale Press.

PETsMART Inc. operates more than 570 pet supply stores in the United States, Canada and the United Kingdom.