Small businesses are the next big thing, as Faire hits $ 7 billion valuation
The Faire online wholesale marketplace, which was created to make life easier for small retailers, artisans and family manufacturers, is now valued at $ 7 billion following the latest funding injection.
Faire’s valuation tripled following the round table. It went from startup to unicorn-times-seven in just four years.
The Series F’s $ 260 million investment cycle is another sign that tech investors are betting there is money to be made with digital solutions for small businesses.
The success of Shopify, the small business-focused web hosting platform, which has seen its inventory grow from an initial offering of $ 17 in 2015 to more than $ 1,220 today, has made investors eager to check out. get into the next big thing for small businesses.
Faire’s business model is to give local retailers the same tools that large retailers benefit from: collective purchasing power for better prices, access to capital, free returns and data on how products sell. Across the country. Faire also manages payments and facilitates international transactions for mom and pop stores, and earns commissions on sales made through the site.
The round table, praised by Sequoia Capital, includes all existing investors as well as new investors Baillie Gifford and Wellington Management. The investment comes as Faire expands in Europe and taps into the $ 1 trillion European market.
Faire is currently operating in the largest markets in Europe, including the UK, France, Germany, Spain, the Netherlands and Italy, and plans to expand throughout continental Europe this year.
According to Faire, the potential for rapid growth is even greater in Europe than in the United States.
Faire in Europe’s volume is annualized at around $ 50 million, a scale that took two years to reach the United States, and in the first 30 days of launch in various European countries, Faire’s growth in Europe has exceeded US growth by 230%, according to the company. .
The founders of Faire say their company’s ability to triple revenue amid a pandemic, with sales of more than 75 million items last year, is further proof that betting on small business was a smart move.
“Faire’s pace of growth indicates that independent retailers around the world are evolving and changing the face of the retail industry as we know it,” said Faire CEO and Co-Founder Max Rhodes, announcing funding.
Faire is currently used by 200,000 retailers in North America and Europe, as well as 20,000 manufacturing brands in more than 80 countries.
“We are in the midst of a decades-long digital transformation,” said Ravi Gupta, partner at Sequoia Capital. Do, said Gupta. “Paves the way for the digitalization of the global multi-billion dollar wholesale market. “
Rhodes and his co-founders – Marcelo Cortes, Jeff Kolovson, and Daniele Perito – came up with the idea for Faire when they were trying to sell a high-end umbrella. While they spent a lot of energy trying to sell the umbrella in large department store chains, they noticed that the umbrella sold better in independent stores and boutiques. But there was no easy way to reach these stores or connect with them digitally. The founders of So Faire have built one.
Now, they like to point out that independent retailers in North America and Europe make more than twice the revenues of Walmart and Amazon combined. And as Shopify has shown, if you take a small slice of millions of sales from small businesses, you’ve got a big business.