Subjects: Photo/Multimedia, Funding
Faire Valuation Grows to $12.4 Billion With $400 Million Series G Funding Round Co-Led by Durable Capital Partners LP
Faire, the online wholesale marketplace connecting more than 300,000 retailers with 40,000 brands around the world, today announced the closing of $400 million in a Series G investment round co-led by new investor, Durable Capital Partners LP, and returning investors, D1 Capital Partners, and Dragoneer Investment Group. This round, which includes all existing investors, is Faire's third in just over a year and values the wholesale market leader at $12.4 billion, bringing its total funding-to-date to more than $1 billion. Six months after Faire launched across 15 markets in Europe and the United Kingdom, annualized sales volume in the region has exceeded more than $150 million ? a scale that took nearly three years to achieve in North America.
The rise of independent retail around the world remains strong and continues to see increased support from consumers with the National Retail Federation forecasting record-breaking growth for in-store shopping this holiday season. By enabling seamless cross-border trade and solving the most pressing wholesale challenges brands and retailers face, Faire is connecting entrepreneurs around the globe in ways that were previously impossible or prohibitively expensive. As a result, Faire has reported more than 3x year-on-year growth, reaching more than $1 billion in annual volume in less than five years.
"Faire's visionary leadership team is building a business that is truly in balance with all of its stakeholders, allowing emerging brands and independent retailers to do what they do best ? create and sell products," said Anouk Dey, partner of Durable Capital Partners LP. "With their continued investment in the U.K., Europe, and beyond, we believe that Faire will transform the global wholesale market."
Even amid rapid growth, Faire's global opportunity remains massive. There are more than 2 million independent retailers across North America and Europe alone doing $2.5 trillion in revenue, more than twice that of Walmart and Amazon combined. The accelerated adoption of Faire across Europe and the United Kingdom has illustrated the significance of connecting retailers and brands in a central online marketplace and is a powerful indication of its future impact on the $25 trillion retail industry.
"With our global reach, Faire is providing an even greater opportunity for the independent retail community to compete against big-box giants," said Max Rhodes, Faire co-founder and CEO. "By removing the traditional growth hurdles our customers face, we have enabled more opportunities, more connections, and more possibilities for the entrepreneurs who use the platform. Our ability to deliver local and cross-border demand to brands, and in turn offer retailers access to a more expansive, data-driven selection is how Faire will define the future of retail."
Since launching in Europe and the United Kingdom this year, Faire's community of independent brands and retailers across the region now represent the fastest-growing demographics of users on the platform to-date. Highlights include:
- Faire's European brand base has grown by more than 10x, with the total amount of products for sale from the region increasing 800%, culminating in access to over 400,000 unique products.
- Enabled over 160,000 orders between North American and European businesses, and over 2 million total connections between businesses on the platform.
- Saved independent retailers over $7 million by offering free import duties and free shipping, allowing them to source global products at no additional cost.
Faire's world-class team has more than doubled over the past year, now representing a team of roughly 700, located across 10 global offices in the United States, Canada, the United Kingdom, the Netherlands, and Brazil. This new capital will help Faire continue to hire top talent and will be used towards building industry-leading tools that equip its customers with the resources to compete. Additionally, this capital will ensure Faire can grow its unique supply of global brands, as well as introduce Faire into new markets and economies around the world.
Company highlights:
- Founded in 2017 by Square alumni Max Rhodes (CEO), Marcelo Cortes (CTO), Jeff Kolovson (COO), and Daniele Perito (CDO). Headquartered in San Francisco and Waterloo, and also located in Salt Lake City, Atlanta, Los Angeles, New York, Toronto, London, Amsterdam, and São Paulo.
- Faire has sold over 125 million products in the last year, recording an average of over $10 million in sales per day during peak buying events.
- Over $1 billion total funding raised to date by investors including Baillie Gifford, D1 Capital Partners, Dragoneer Investment Group, DST Global, Forerunner Ventures, Founders Fund, Khosla Ventures, Lightspeed Venture Partners, Norwest Venture Partners, Sequoia Capital, Wellington Management, Y Combinator, and new investor Durable Capital Partners LP.
- Faire now serves 300,000 retailers across North America and Europe, as well as 40,000 brands from over 80 countries.
- Faire has grown to roughly 700 employees, and expects to double headcount in the next year, hiring across all global office locations.
About Faire:
Faire is a wholesale marketplace taking a data-driven approach to connect local, independent retailers with the best brands and artisans to stock their shelves with the best goods. Faire retailers rely on Faire for the convenience of ordering from thousands of their favorite brands all in one place, net 60 payment terms, free returns on opening orders, and freight caps. For brands, the platform provides powerful sales, marketing, and analytics tools, so sellers can simplify their wholesale business and focus on making great products.
About Durable Capital Partners:
Durable Capital Partners LP ("Durable") is an investment manager focused on companies that have the potential to compound over time. Durable invests across private and public markets with a long-term horizon, applying deep knowledge of compounder patterns to support leaders building durable and sustainable businesses. Henry Ellenbogen, who previously was Portfolio Manager of T. Rowe Price's New Horizon Fund, co-founded Durable in 2019.
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