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As e-commerce evolves, Faire raises $ 400 million for a valuation of $ 12.4 billion


Faire, an online wholesale marketplace, raised a Series G of $ 400 million for a valuation of $ 12.4 billion. The round was co-led by new investor Durable Capital Partners and existing investors D1 Capital Partners and Dragoneer Investment Group, with support from other existing funders.

The San Francisco-based company, which helps small retailers compete with retail giants like Amazon, has provided more than $ 1 billion in private funding since its inception in 2017.

Investor interest in Faire is the latest example of a change in direction of direct-to-consumer brands to startups that allow various merchants to reach online shoppers.

Although the DTC Allbirds and Warby Parker brands made their successful public market debut earlier this year, a number of other companies that use the same business model have struggled amid increased competition and pressure. increased customer acquisition costs through ads on Google, Facebook and Instagram.

Just this week, Casper, the former DTC darling, agreed to be private. The offering of $ 6.90 per share represents a 94% premium over the mattress company’s closing share price on Nov. 12, but the advertised sale price of $ 308 million is significantly lower than the $ 1.1 billion valuation Casper earned on his last private tour in 2019, according to PitchBook data.

In a blog post on the evolution of e-commerce, Forerunner Ventures, a company that has built a reputation as a preeminent DTC investor, says the future of online retail will be driven by salespeople who are “now frequently a person or a small business.” “

Doing fits perfectly into this evolution. Forerunner, who recently started moving away from DTC investments and focusing more on B2B startups, co-led the company’s $ 12 million Series A in 2018.

Image presented by Feodora Chiosea / Getty Images

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