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NEW YORK, United States — Fab.com Inc. said it raised $150 million from investors including China's Tencent Holdings Ltd., valuing the 2-year-old online retailer of uniquely designed home goods at about $1 billion.
The funding will help Fab expand into Asia and enhance its supply chain operations, the company said. Fab, which isn’t yet profitable, is targeting sales of about $200 million and $300 million in 2013, about double last year’s revenue, Chief Executive Officer Jason Goldberg said in an interview.
Fab has already received $310 million in investment and acquired five companies, Goldberg said. The New York-based retailer obtained a warehouse to store and distribute inventory, created a Fab-branded product line and is opening showrooms to display products.
“We want to design a lifestyle that’s modern, colorful and urban-inspired and bring that all over the world -- to Asia next,” Goldberg said in an interview. “Our goal here is to raise the money that the company needs in order to fulfill dreams to be the next $10 billion e-commerce business.”
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Fab plans to raise an extra $50 million to $100 million in the next few months, said a person familiar with the matter, who asked not to be named because the information isn’t public. Deborah Roth, a company spokeswoman, declined to comment on the Fab’s plans for additional funding. Today’s announcement puts Fab’s value at about $1 billion, she said.
Fab debuted in 2010 as Fabulis.com, a gay social network. Goldberg and co-founder Bradford Shelhammer abandoned the idea after failing to amass enough users, choosing instead to sell furniture, jewelry and kitchenware.
Atomico, Andreessen Horowitz and Itochu Corp. were also among investors. Bloomberg LP, the parent company of Bloomberg News, is an investor in Andreessen Horowitz.
By: Sarah Frier; Editors: Crayton Harrison, Niamh Ring, Nick Turner
