The Gilt site which sends its selective members sale and clearance information on expensive fashion items has just raised $40 million in capital from General Atlantic and Matrix Partners, reports The Business Insider.

The New York based company has been valued at $400 million and anticipates bringing in $500 million in revenue next year, is able to offer its members better prices on luxury goods because it also acts as a channel for designers to unload excess inventory.

With the credit crunch prompting a drop in discretionary purchases, designers say they have more surplus on their hands than usual.

To become a member, a user must receive an invitation — preserving the exclusive quality of the brands its sells, even at a 70 percent discount. Sales are conducted online and last about 36 hours.