Fab.com Acquires FashionStake After Seven Months of Rapid Growth
In the past seven months, Fab has grown rapidly, registering 1.65 million users, who have purchased 750,000 products.
It now plans to grow even faster, with the help of this acquisition.
Both companies have a similar mission: To bring independent artists and craftsmen, who make aesthetically appealing and sometimes out-of-the ordinary items, to a large marketplace.
Fab.com does this mostly for home decor, and New York-based FashionStake does it mostly for fashion and apparel. The sites have the flavor of a Gilt Groupe, which sells high-end fashion at a discount, except they offer more undiscovered brands, at more reasonable prices.
In a blog post, Fab CEO Jason Goldberg said FashionStake co-founders Vivian Weng and Daniel Gulati will join the Fab company.
Goldberg did not disclose terms of the deal, but it’s possible that he tapped into a large cash reserve, which includes a $40 million round of capital raised last month from Andreessen Horowitz and others.
FashionStake, which launched in September 2010, has received investments from a number of players, including Battery Ventures, Forerunner Ventures and Gilt Groupe co-founder Alexis Maybank.
Last year, FashionStake acquired Moxsie, another retailer of independent fashion.