Web retailer Fab valued at $1 billion with funding from Tencent
(Reuters) - Fab has raised $150 million from several investors, including Tencent Holdings (0700.HK), that values the online retailer at $1 billion.
As part of the funding round Tencent, China's largest online gaming and social networking company, will get to appoint a director to Fab's board, said Jason Goldberg, Fab's chief executive and founder, in a post on his personal blog on Wednesday.
"We specifically sought out a strategic partner like Tencent because we are intent on bringing Fab to many new markets," Goldberg said.
A company spokeswoman said the current round of financing values Fab at $1 billion.
Fab, which specializes in products that emphasize modern design including furniture, clothing and jewelry, currently gets 70 percent of its sales from the U.S. and 30 percent from Europe, according to the company's data
The New York-based company, which began as a gay social network before switching to e-commerce in 2011, says it had 13 million "members" as of April and that sales grew by more than 500 percent in 2012.
The new financing brings two-year-old Fab's total funding to date to $310 million. Goldberg said the $150 million is the first slice of its latest round of financing that the company will complete in the next few months.
In addition to Tencent, Fab said it was adding Itochu Technology Ventures (8001.T) as another strategic investor and that existing investors including Atomico and Andreessen Horowitz were also participating in the new round of financing.
(Reporting by Alexei Oreskovic; Editing by Phil Berlowitz)