Wayfair announces what is expected to be one of the most important market moves in the US online retail landscape: its IPO. The company previously raised $157 million this year, valuating it at $2 billion.
The online home-furnishing retailer has shown consistent growth in revenue throughout 2013, as well as the first half of 2014. Total revenue for 2013 was $915.8 million (52.4% increase from 2012). This fast-paced growth was maintained in 2014, as revenues reached $574.1 million, up 49,8% from the same period last year.
The company was founded by Niraj Shah (CEO) and Steven Conine (CTO), in 2002. It was first headquartered in Conine’s home and was then named CSN Stores LLC. The company grew to operate around 240 individual ecommerce sites, such as bedroomfurniture.com or racksandstands.com (first one online).
Wayfair reached $100 million in revenue in 2006 for the first time, after adding more and more product categories to its catalogue. It now features products for home deco, institutional, furniture and many more. It has more than 7 million products listed and over 2.6 million customers in the first half of 2014 (75% increase from last year).
In 2011, most of the niche webstores were consolidated in Wayfair.com. The company changed its name to Wayfair LLC and continued its aggressive expansion. It is now the largest online-only retailer for home, and number 45 in the largest US online retailer’s list.
Although the company consolidated its brand on the Wayfair platform, it does operate other subsidiaries under different brands. Joss and Main is a flash sales store for home, Dwell Studio features upscale home furnishings and AllModern sells affordable design items.
The largest company shareholders are founders Niraj Shah and Steven Conine, who own 57.8% of the company. Next notable shareholder is private equity company Great Hill Partners (11.4%).
This upcoming IPO was greatly expected yet slightly overshadowed by AliBaba upcoming IPO in the States.
It is worth mentioning that, despite increasing revenue, the company booked a $15.5 million loss in 2013.