Announcing $170M at a $2.5B Valuation in Series E Led by Sequoia Capital
October 27, 2020 | By Faire
Faire, the online wholesale marketplace connecting more than 100,000 local retailers and 10,000 brands, today announced the close of $170 million in funding in a Series E investment round led by Sequoia Capital. This investment raises Faire’s valuation to $2.5 billion, more than double the valuation from a Series D round less than one year prior. The round includes existing notable blue-chip investors Y Combinator, Lightspeed Venture Partners, Forerunner Ventures, Khosla Ventures, Founders Fund, as well as participation from new world-class investors D1 Capital Partners, DST Global, Dragoneer and Norwest Venture Partners.
Currently, independent retailers are generating almost $1 trillion in annual sales across in-store and online channels, and they continue to win back more of the market as the essential role of local business is emphasized amid Covid-19. Not only have Faire retailers seen significant support as consumers commit more of their spending power to local economies, but they have successfully pivoted their operating strategies to compete within a new normal. By leveraging Faire’s tools that help optimize inventory and accelerate omnichannel performance, Faire customers are meeting increased consumer enthusiasm for local, curated retail. As a result, Faire has more than tripled its business, with retailers purchasing over 35 million products within the last year alone, to keep up with local consumer demand.
“The future of retail is data-driven, dynamic and personalized,” said Ravi Gupta, Partner at Sequoia. “Faire enables local retailers and emerging brands to embrace this future. The incredible adoption over the last few years is a testament to the value Faire provides to its partners. We are thrilled to support them on this journey.”
In the last year, Faire has seen significant marketplace growth and an increase in the overall performance of customers on the platform:
- During peak buying periods this year, Faire saw an average of over $3 million in sales per day.
- Since raising a Series D round in October 2019, Faire has more than tripled its business, selling over 35 million products within a year, compared to the sale of 15 million items over the course of the two years prior.
- Faire’s customer base has grown to more than 100,000 independent retailers and over 10,000 brands from a wide range of categories including apparel, food and beverage, home decor, gift, and specialty products. The food and apparel categories have seen the fastest growth on the platform, at the rate of nearly five times year over year.
- Faire now represents more retail locations by door count in North America than Starbucks, Walgreens, Walmart, Sephora, Target, and Nordstrom combined.
“We’ve always believed that if given the right tools and resources, the entrepreneurial spirit of our customers is unstoppable,” said Faire CEO, Max Rhodes. “Their resilience amid severe economic uncertainty has reinforced our conviction that local retailers are well-positioned to redefine the future of retail. This investment allows us to continue to bet on that future by providing them with the tools needed to empower their path forward to a thriving business.”
This round of capital will equip Faire with the opportunity to continue the enhancement of its wholesale platform with important offerings for both brands and retailers. Additionally, Faire has announced plans to expand its marketplace into the United Kingdom next year, with support for most European markets to follow quickly thereafter. The company also intends to significantly grow its world-class team across the San Francisco, Salt Lake City, Kitchener-Waterloo, and Toronto offices.
- Founded in 2017 by Square alumni Max Rhodes (CEO), Marcelo Cortes (CTO), Jeff Kolovson (COO), and Daniele Perito (CDO). Headquartered in San Francisco, Kitchener-Waterloo, Toronto, and Salt Lake City.
- Welcomed former Fanatics CFO, Lauren Cooks Levitan to the team last September, following 20 years of strategic, financial, and operational experience at the most transformative brands in retail.
- $438.9 million total funding raised to date by investors including Y Combinator, Lightspeed Venture Partners, Forerunner Ventures, Khosla Ventures, Sequoia Capital, and Founders Fund.
- In August 2019, Faire opened up the marketplace to international brands in nearly 40 countries, and in October of that year, expanded internationally to retailers in Canada.
- This year, Faire hosted their first online trade show to help retailers access and buy discounted inventory for the holiday season with confidence. Faire matched promotions during the event, resulting in massive savings of over $2 million for participating retailers.
- Read CEO, Max’s letter announcing the news to Faire customers here.