Zulily, a private-sale shopping site targeted at busy moms and their kids, has raised $85 million in Series D funding led by Andreessen Horowitz. Fortune reported that the site, which launched in 2009, was valued at $1 billion. This brings Zulily's total funding to $139 million.
The flash-sales site, which has 10 million members, features 35 new sales events daily that offer up to 70 percent off. Sales last an average of 72 hours and products range from clothing and toys to household goods and books. Zulily was co-founded by Darrell Cavens, the former senior vice president of marketing and technology at Blue Nile, and Mark Vadon, the chairman and founder of Blue Nile.
“Zulily is one of the fastest-growing businesses we've ever encountered, which really shouldn't be a surprise given the founders' previous success at the pioneering online diamond retailer Blue Nile,” said Jeff Jordan, partner, Andreessen Horowitz, in a release.
“These two dads saw an amazing opportunity to fill a big underserved need, providing moms with the opportunity to buy boutique-quality apparel and household goods at mass market price points. We believe Zulily has huge market potential and is well on their way to becoming an iconic e-commerce franchise.”
In the last year, Zulily took fulfillment in-house and built two shipping centers, one in Nevada and one in Ohio, allowing packages to get to customers faster. Zulily has also expanded internationally, having launched in Europe earlier this year. Additionally, the company offers mobile apps for shoppers on the go. Mobile now represents 30 percent of transactions.
$85 million is big money. Clearly Andreessen Horowitz sees impressive growth in terms of usage and sales at Zulily.