Zulily announced today that it has received $43 million in Series C funding. The round was led by Meritech Capital Partners, the same investment firm behind Facebook, PopCap Games and Zipcar, with existing investors participating. This latest round puts Zulily’s total funding at $53.6 million to date. Craig Sherman, managing director of Meritech, will also be joining the Zulily board.
“In 18 months, Darrell Cavens and his merchant team have established great relationships with amazing brands, allowing the company to carefully curate each event to help its members discover the best brands and styles at a great value,” said Craig Sherman, managing director of Meritech Capital Partners. “The site has become the tastemaker of children’s fashion and I look forward to being on the board and part of their success as they become the next big brand in children’s retail.“
A number of sources are stating that this recent round of funding puts Zulily’s valuation at about $750 million. According to GeekWire: That’s a jaw-dropping number, topping the market value of publicly-traded Seattle tech companies such as RealNetworks, InfoSpace and Blue Nile. It would also put Zulily in the ballpark of Zillow, which went public last month and is now valued at $736 million.
The company says it will use this new infusion of cash to hire additional employees as well as funding other marketing and growth initiatives.
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. Cavens and Vadon started the company shortly after becoming new dads and realizing that the shopping at big box retail outlets and boutique stores did not provide a broad selection of unique, high-quality children’s apparel, gear and toys at reasonable prices. With an e-commerce success story under their belt at Blue Nile, the two fathers launched the Zulily website in January 2010 and have completely changed the way millions of busy moms discover the best values and hottest boutique brands for their families.