Join top executives in San Francisco on July 11-12, to hear how leaders are integrating and optimizing AI investments for success. Learn More
The battlefields for beds and bath towels is getting fierce.
Home goods giant Wayfair is raising a $150 million round with a valuation of $2 billion, according to a report in Reuters. This news comes just one day after rival One Kings Lane announced closing $112 million in new funding at a valuation of $912 million.
A Wayfair spokesperson said the company can’t comment on the report.
Wayfair is a large online retailer of home goods and furnishings — the second largest in the United States. The company generated $915 million in revenue in 2013 representing an annual revenue growth rate of 55 percent.
Its selection includes more than seven million home items from 12,000 brands.
Wayfair as been around for a decade and it’s brand portfolio also includes AllModern.com, Joss & Main, and DwellStudio. Last year Wayfair introduced a new flash-sale feature, aligning it even more closely with One Kings Lane, which makes all its sales through short limited-time offers.
In an interview with VentureBeat last year, Wayfair founder Niraj Shah said that a couple of key trends are driving the online sale of home goods. It is a vast, fragmented, and cost-sensitive market. Furniture is something people research before they buy. An online store that brings a wide range of brands together, makes comparison shopping easier, offers discounts, and takes care of shipping looks pretty good to consumers.
But people purchase only a tiny percentage of home goods online, and this is the e-commerce opportunity Wayfair and One Kings Lane are after.
“Most people don’t buy home goods until they are 30 years old and have a house or are married with kids,” Shah said. “The group that is at this stage in their life now is the first to grow up with the Internet, so their willingness to buy online is high compared to other folks and it goes up every year. E-commerce keeps on getting better and better and people feel more comfortable making purchases online. We want people to start by looking here, because we have everything. There is a pretty big opening here and we are going to run with it.”
Mutual fund giant T.Rowe Price led this round, according to Reuters’ report. Wayfair has not yet responded to request for comment.
Wayfair is based in Boston and raised $201 million to date before this, bringing its total capital raised to $350 million. It’s last round of $36 million closed in 2012.
Wayfair is based in Boston.
VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Discover our Briefings.