NewEgg, a consumer-facing online retailer that sells computer components and other electronics, including software, digital cameras, cell phones and laptops, has filed to go public, expecting to raise $175 million, reports PE Hub. Founded in 2001, the company says it brought in $2.2 billion in revenue in the last year alone. That’s a pretty solid figure for a niche site competing with Amazon and Best Buy’s web property, among others.
Insight Venture Partners stands to benefit the most from the potential IPO. The firm sunk $20 million into the City of Industry, Calif. company in 2005, giving it a 12.7 percent stake.
Last year, NewEgg made news when it stopped charging New York State sales tax — something that Amazon still does — in response to customer feedback. Other than that, the site is known for its emphasis on bargains and running much-hyped sales, including a pre-Black Friday sale and its ongoing Shell Shocker sale. Right now it is running a major Fall Sale on everything from televisions to GPS systems.
Clearly tailored for consumers looking just for electronics, the NewEgg site puts lists of new product releases and savings opportunities — including a directory of refurbished products and the 36 best offers of the day. And just like Amazon, it allows you to set up a regular account so that the site can recommend products based on past purchases, and keep track of buying information.