Deals

Zulily rockets to billion dollar valuation with $85M from Andreessen Horowitz

Zulily, a daily deal’s site for moms and their kids, has just announced raising $85 million from prestigious venture firm Andreessen Horowitz. This fourth round of funding sets Zulily’s valuation at $1 billion.

Zulily presents flash sales that last for an average of 72 hours. Users receive an email every morning with the daily offerings and have access to around 35 new sales a day. Members can get up to 70% off items like clothing, toys, and kid-centric home goods.

Zulily recently crossed the 10 million member threshold. According to Andreessen partner Jeff Jordan, innovative startups are shaking up e-commerce companies and physical stores alike, and the firm “could not possibly be more bullish on the prospects for e-commerce.”

“We believe we’re in the early stages of a revolution in retail, where inefficient physical businesses are giving way to highly efficient, innovate online ones,” he said  in a blog post. “Zulily is one of the fastest growing businesses we have ever encountered. What is even more impressive is how they have done this: The company spent minimal capital to achieve this result.”

Jordan also underscored that Zulily’s success has had much to do with its entrance into new markets, such as women’s apparel and housewares, the strategic positioning that sets the company apart from e-commerce giants like Amazon, and its data-driven approach to marketing, merchandising, and operations.

Since raising $43 million last August, Zulily has moved order fulfillment in-house, built two shipping centers, and expanded internationally. Today, it also announced the launch of the app for iPad. This recent investment brings the total amount raised to $138 million and will be used to scale the platform.

“Zulily is all about moms — in under three years, we’ve seen tremendous growth combined with the loyalty and passion of our customers, which inspires us to do more every day,” said CEO Darrell Cavens, “The vast majority of purchases come from repeat customers, and we need to continue to surprise and delight them. Additional funding will allow us to expand more quickly and continue to enhance the experience for today’s busy mom.”

Cavens formerly served as the senior vice president of marketing and technology at Blue Nile, an online retailer of fine jewelry. He launched Zulily in 2010. The company is headquartered in Seattle and has 600 employees across the U.S.

0 comments