Wayfair.com raises $36 million to grow Joss & Main
Home Accents Today Staff -- Home Accents Today, 12/10/2012 10:04:23 AM
BOSTON - Wayfair.com announced it has secured $36.3 million in new equity financing to fuel the growth of Joss & Main, the company's private sale site for the home. Investors include Battery Ventures, Great Hill Partners, HarbourVest Partners and Spark Capital.
Joss & Main has acquired nearly three million members and is operating at a $100 million annual revenue run-rate to become the fastest growing flash sale site for home goods and furnishings, according to a company press release.
"Joss & Main has gained tremendous traction over a very short period of time through its unique approach to curated e-commerce," said Niraj Shah, CEO and co-founder of Wayfair.com. "The site hit its highest sales day on Cyber Monday by a factor of over 50% and sales are up 10-fold since last year. It's clear that shoppers love the Joss & Main experience and with the help of our investors we expect to grow membership and sales at an even greater pace."
A division of Wayfair.com, Joss & Main is a membership-based website that offers home décor, discounted at up to 70% off retail, via daily events, spotlight collections highlighting design trends and styles, and curated collections in collaboration with celebrities and design professionals. Members can explore curated collections of furniture, housewares, decor and accents through limited-time sales.
"Our aim is to evoke a lifestyle magazine and encourage the delight of daily window shopping as well as the ease and temptation to buy every item from every story - if you act quickly enough," said John Mulliken, co-founder and general manager of Joss & Main. "This recipe is resonating very strongly with our members as evidenced by the pace at which new members are signing up every day. Because we're part of Wayfair.com we have capabilities and flexibility with our offering and supply chain that other stand-alone flash sites cannot offer and that, in turn, makes our customer experience even more compelling."
The site released a mobile app earlier this year that has helped drive the percentage of revenue from mobile up 50% this holiday season.
"Mobile shopping represents more than one third of sales every weekend, and reached nearly 40% on Cyber Monday," Mullikan said. "Mobile is growing four to five times as fast as the rest of our business, which is fast-growing itself. The combination of inspirational content, compelling pricing, and a simple experience to quickly shop our events from anywhere is driving a big portion of our success - and our mobile app members are 40% more engaged than our other members."
"Niraj and his team have done an amazing job over the years we've known them, and their move into flash sales is no exception," said Neeraj Agrawal, general partner at Battery Ventures. "The online home furnishing market has experienced double digit growth over the last year, and we believe Joss & Main is poised to lead the flash sales portion. It's a mega industry that's just beginning to hit its stride online, and the team has the right DNA to capture the opportunity."
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