Online marketplace Faire raises $150 million in Series D funding
Category: #retail  By Saipriya Iyer  Date: 2019-11-01
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Online marketplace Faire raises $150 million in Series D funding

Online marketplace revenue is expected to witness an exponential growth in the future due to growing concentration of companies in the space and the level of convenience offered by them. Various online marketplaces are increasingly raising funds to entrench themselves deeper into the sector than their competition.

Indigo Faire Inc., a US-based online wholesale marketplace established two years ago, reportedly announced that it raised $150 million in a Series D investment round, which took the total valuation of the company to $1 billion. The company assists mom-and-pop stores to discover and stock novel products.

The Series D investment round was led by Founders Fund and Lightspeed Venture Partners. Existing investors like Khosla Ventures, Forerunner Ventures, and YC Continuity also took part in the investment round.

The Series D funding comes just less than a year after the firm raised $100 million at a $535 million valuation. Since its establishment in 2017, the company has raised $266 million to date. It also appeared on the list of Forbes’ Next Billion-Dollar Startups this year.

The company plans to utilize the raised capital to further expand its footprint into new markets and to continue advancing and adding new features to its online marketplace.

A key feature of this online marketplace is that it would accept free returns for items which did not sell within 60 days, which greatly decreases the risk a retailer generally runs at when it wants to try any new inventory.

The company has its international expansion already under progress and in 2019 it opened its marketplace to brands from 39 different countries. Currently, the brands from those countries can be stocked by U.S. and Canada retailers.

The marketplace has developed rapidly and today it provides 7,000 brands to 50,000 stores.

The company has enabled the sale of more than 15 million products over the past two years and is presently making $1 million in sales per day on its marketplace platform, which has gone up from the $1 million sales per month at the start of 2018. The company takes a 15 percent cut on each sale.

Founder and CEO of Faire, Max Rhodes stated that the investment round is not a success indicator. The company views this fundraise as a vital milestone for retail’s future. The company’s success would look like more diversity in regional communities; unique and special downtowns where the community can discover top-quality items sold across stores owned by their neighbors.
 

Source credit: https://news.crunchbase.com/news/online-marketplace-faire-ups-local-retail-game-with-150m-series-d-bags-1b-valuation/



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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