The online wholesale marketplace Faire, which was created to make life easier for small retailers, artisans and family goods manufacturers, is now valued at $ 7 billion after the latest funding infusion.
Faire’s score tripled in the funding round. In just four years, he went from a startup to a one-time-seven unicorn.
The $ 260 million Series F investment round is another sign that tech investors are betting on digital solutions for small businesses.
The success of Shopify, a small business-focused web hosting platform that has surged from an initial offering of $ 17 in 2015 to over $ 1,220 today, has prompted investors to become interested in the next big thing for small businesses.
Faire’s business model is to provide local retailers with the same tools that large retailers use – collective purchasing power for better prices, access to capital, free returns, and data on how goods are sold across the country. Faire also handles payments and simplifies international transactions for family and popular stores, and earns commissions on sales made through the site.
The funding round provided by Sequoia Capital includes all existing investors as well as new investors Baillie Gifford and Wellington Management. The investment comes as Faire expands into Europe and enters the $ 1 trillion European market.
Faire currently operates in the largest markets in Europe, including the UK, France, Germany, Spain, the Netherlands and Italy, and plans to expand across continental Europe this year.
Fair said the potential for rapid growth in Europe is even higher than in the United States.
Faire has an annualized sales of approximately $ 50 million in Europe, according to the company, and it took two years to achieve that in the United States, and in the first 30 days after launching in various European countries, Faire’s growth in Europe outpaced growth in the US by 230%. …
Faire’s founders say their company’s ability to triple its business in the midst of the pandemic, with sales of over 75 million units last year, is further proof that the small business was a smart move.
“Faire’s growth rate signals that independent retailers around the world are evolving and reshaping the retail industry as we know it,” Faire CEO and Co-Founder Max Rhodes said in announcing the funding.
Faire is currently used by 200,000 retailers in North America and Europe, as well as 20,000 manufacturing brands in over 80 countries.
“We are in the midst of a digital transformation spanning several decades,” said Ravi Gupta, partner at Sequoia Capital. “Come on,” Gupta said. “Leading the way in digitizing the multi-trillion dollar global wholesale market.”
Rhodes and his co-founders – Marcelo Cortez, Jeff Colovson and Daniele Perito – came up with the idea of Faire when they were trying to sell an elite umbrella. Although they spent a lot of energy trying to sell the umbrella in large department store chains, they noticed that the umbrella actually sold better in independent stores and boutiques. But there was no easy way to get to these stores or contact them digitally. So the Faire founders built it.
Now they like to point out that independent retailers in North America and Europe have more than double that of Walmart in revenue.