Fast-growing daily deal site Zulily has pulled in an additional $85 million in venture capital financing, cash that the Seattle company plans to use to bolster its position in selling books, clothes, toys and other items for babies and kids. The company also announced that it has topped 10 million members, most of whom get the Zulily daily email blast with discounts on a wide array of products.
Leading the round is Andreessen Horowitz, bringing total funding to roughly $138 million. Andreessen Horowitz is the venture capital firm of Marc Andreessen, the Netscape co-founder whose recent investments include Airbnb, Box, Twitter and Zynga. The company declined to comment on other investors in the round, or whether existing investors such as Maveron and Meritech Capital Partners participated.
“Zulily is all about moms—in under three years, we’ve seen tremendous growth combined with the loyalty and passion of our customers which inspires us to do more every day,” said CEO Darrell Cavens in a statement. “The vast majority of purchases come from repeat customers and we need to continue to surprise and delight them. Additional funding will allow us to expand more quickly and continue to enhance the experience for today’s busy mom.”
At the time of the company’s $43 million funding round last year, we reported that Zulily’s valuation was set at about $750 million. The valuation in the latest funding was not reported, though Fortune’s Dan Primack pegged it at about $1 billion. (He also had previously reported that the company was raising $100 million). Update: In an interview with GeekWire, Cavens confirmed that the company commanded a $1 billion valuation in the round.
In a statement, Andreessen Horowitz partner Jeff Jordan called Zulily “one of the fastest growing businesses we’ve ever encountered.” No one from Andreessen Horowitz is joining the board.
Zulily’s growth has been nothing short of phenomenal, with 600 hundred employees now spread among Seattle, London, Columbus, Ohio and Reno, Nevada.
It is currently bursting at the seams at its Seattle headquarters in the SoDo district, and we’ve heard the company is looking to move its headquarters in Seattle, looking at the RealNetworks offices on Elliott Avenue.
Cavens declined to comment on those rumors, and he said that the company has plenty of space for their needs in the short term. He declined to disclose revenues or whether Zulily is profitable.
Cavens co-founded the company with former Blue Nile CEO Mark Vadon three years ago. Even though Zulily has been growing at a rapid clip, it has maintained a relatively low profile, shying away from press. But with the latest funding, Zulily could be on the path for an IPO, especially after it hired Marc Stolzman as CFO two months ago.
Zulily also is known for moving fast, something that staffers internally dub “Zulily time.”
“It’s all about running at it every single day, running very, very fast,” said Cavens at an event in Seattle earlier this year. “It’s hard work.”
Here’s Cavens talking about the company at GeekWire’s Startup Day in September: