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Wholesale Marketplace Faire Raises $260 Million

June 23, 2021 Kelly Kovack
June 23, 2021
Eric Prouzet via Unsplash

Faire, the online wholesale marketplace connecting more than 200,000 retailers across North America and Europe with 20,000 brands from over 80 countries raised $260 million in its latest funding round valuing the business at $7 billion.

WHO: Founded in 2017 by Square alumni Max Rhodes (CEO), Marcelo Cortes (CTO), Jeff Kolovson (COO), and Daniele Perito (CDO),  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.

WHY: This new capital will help Faire continue to build leading tools and market events that equip its customers with the resources they need to thrive, including doubling down on its investment within apparel after seeing meaningful category growth. Additionally, this capital will help Faire continue to hire top talent to significantly increase headcount across all global offices, as well as introduce Faire into new markets to create a truly globalized marketplace.

IN THEIR OWN WORDS: “We're still in the single-digit online penetration for the wholesale market,” said Sequoia partner Ravi Gupta. “We're in the very early innings of what we think is a multi-decade-long trend towards digitization on some of these things.”

“Faire’s pace of growth signals that independent retailers across the globe are evolving and changing the face of the retail industry as we have known it,” said Faire CEO, Max Rhodes. “We have always believed in this thriving community of entrepreneurs, and are honored to be a navigating partner for them through the pandemic and into these periods of recovery. Faire will continue to invest in independent brands and retailers at one of the most important times in history, as small businesses reopen around the world. We know that they will rebuild and reimagine the future of retail to better serve their local communities.”

DETAILS:

  • Faire raised a $260 million Series F valuing the business at $7 billion, nearly tripling its previous valuation of $2.5 billion announced just over six months ago.
  • The round was led by Sequoia Capital and includes all existing investors as well as new global investors Baillie Gifford and Wellington Management.
  • The company has raised $698.9 million total funding to date by investors including Sequoia Capital, Forerunner Ventures, Founders Fund, Khosla Ventures, Lightspeed Venture Partners, Y Combinator, DST Global, Dragoneer, D1 Capital Partners, Norwest Venture
  • Faire has reported 300% YoY growth after expanding to the largest markets across Europe.
  • Faire is now operating across the largest markets in Europe including the United Kingdom, Netherlands, France, Germany, Spain, and Italy, with plans to expand across all of continental Europe in the coming months.
  • Within the first 30 days of launching the platform in each respective market, Faire’s Europe growth outpaced US growth by 230%. Faire volume in Europe is now annualizing to roughly $50 million, a scale that took nearly two years to reach in the US.
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