Wayfair Raises $157 Million in Financing
BOSTON-Online retailer Wayfair has raised $157 million in equity financing as it seeks to invest in its portfolio of home brands.
The company obtained the cash through Series B financing, which is the second round of financing for a business from private-equity investors or venture capitalists. It was led by funds and accounts managed by T. Rowe Price Associates and encompassed investors that included growth-focused mutual funds and a private investment from Julie M.B. Bradley, chief financial officer of TripAdvisor and a Wayfair board member.
Henry Ellenbogen, portfolio manager for T. Rowe Price's New Horizons fund, said Wayfair "has the ingredients to be a much larger company. We are big believers in Wayfair's market opportunity, executive team and strategy, and are excited to be adding growth capital as they continue on the path of building a lasting company."
Wayfair's 2013 revenue totaled $915 million, up 55 percent from the previous year. The company's home brands--which include Wayfair.com, Joss & Main, AllModern and DwellStudio--all experienced significant growth last year, capped off by strong holiday sales in the fourth quarter, according to a Wayfair statement.
Michael Fleisher, Wayfair's chief financial officer, said the investment "solidifies an already strong balance sheet for Wayfair."