Zulily offers flash sales on clothing, toys, and kid-centric home goods, sending members a daily email and running about 35 new sales per day with average sales lasting 72 hours. The site reached over 10 million members and reports that the vast majority of purchases come from repeat customers. Since its last raise, Zulily moved order fulfillment in-house, built two shipping centers, expanded internationally, and launched an iPad app. The company employs about 600 people. Management says the new funding will be used to scale the platform, expand more quickly into categories such as women’s apparel and housewares, and enhance the customer experience for busy moms. Zulily operates a daily email blast and e-commerce site featuring deals on toys, children’s books, baby clothes and other child-focused products. The site sends deals to over four million members, the majority of whom are internet-savvy mothers with high brand loyalty. With few large competitors specializing in child-related deals, the company says it is poised to bring in over $150 million in revenue this year. Founded in October 2009 by Darrell Cavens and Mark Vadonin, Zulily now has 240 employees. The company emphasizes convenience and discovery for time-challenged moms as its key competitive advantage. Zulily is a private-sale shopping site targeting busy moms and their children, distributing daily limited-time deals with limited supply. The service focuses on boutique brands for babies, kids, and maternity and claims shoppers save an average of 50–70% off retail. The company follows the niche daily-deals model, sending daily distributions of time-limited offers. Zulily is led by CEO Darrell Cavens and chairman Mark Vadon, both former executives at Seattle online jeweler Blue Nile. The company has raised a total of $10.6 million to date, including the newly announced Series B. The article frames the fresh capital as support to help Zulily carve out a profitable niche in its market. Zulily operates a members-only online retail store focused on products for kids, babies and mothers. The company plans to use new funding to build a significant online retail e-commerce business. Leadership includes Darrell Cavens as CEO and president and Mark Vadon as chairman, both veterans of Blue Nile. Cavens had most recently spent a year at Microsoft after an eight-year tenure at Blue Nile; Vadon is an investor and former Blue Nile CEO. The company received a $4.6M equity investment to support its growth plans. Jason Stoffer of Maveron joined Zulily’s board in conjunction with the financing.

Total raised

$139M

Funding rounds

4

Latest round

Series D

Latest activity

Nov 2012