Raises $42 Million

Concord, MA-based natural products retailer Inc. raised $42
million in its third round of financing.

The company said it will use a significant portion of the funds to build its
brand’s presence nationally as well as expand its distribution capability.
With this round of financing, the company said it has raised over $61 million
of equity capital in the past 12 months.

The $42 million venture financing was led by North Castle Partners and
includes investments from Group Arnault, GCC Investments and Barnard & Co, as
well as existing investors including [email protected], Bessemer Venture Partners,
Morgenthaler Ventures and BancBoston Ventures. The placement agent was BT
Alex. Brown.

“With compounded sales growth of over 40 percent per month since December and this
additional round of financing, we are poised to be a leading force in the
marketplace,” said Michael Barach, president and CEO of

“ has assembled the top e-commerce team in the category to
carry out its aggressive growth plans,” said Brent Knudsen of North Castle
Partners. “With its seamless execution of marketing, merchandising, customer
service and fulfillment, has every reason to be bullish
about its future.”

This month, the company expanded its off-line media campaign to reach over
30 percent of the United States population; and by June will roll
out a $10 million campaign into 13 additional markets, reaching 39 percent of the
country., Inc. markets vitamins, supplements, minerals, and other
natural products, and has a selection of more than 30,000 items.

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