The following is an excerpt from ROLFE WINKLER | November 24, 2015 | WSJ.com |
Jet.com Inc. said it had raised $350 million of fresh equity in a new funding round that values the e-commerce startup at $1.35 billion.
Mutual-fund giant Fidelity Investments led the round, joined by previous investors.
Jet said it expects to raise another $150 million “shortly,” bringing this round to $500 million.
In addition, Jet it expects to obtain $125 million in debt financing, including a $50 million increase in a credit line from Silicon Valley Bank and $75 million from venture debt investors. It also plans a smaller amount of “strategic financing.”
Jet founder and Chief Executive Marc Lore declined to name any other new investors in the round, nor the source of the venture debt or details of the strategic financing.
Jet is challenging Amazon.com Inc., Wal-Mart Stores Inc.WMT +1.10% and other e-commerce players with an array of household items, electronics, pet supplies and more. It initially planned to sell $50 annual memberships for access to discounted prices, in hopes of attracting more customers to the site, but abandoned that plan in October.
Before the latest financing, Jet had raised about $195 million of equity and debt, said Mr. Lore.
The funding provides a badly needed infusion as the company had been running low on cash.
For more visit: WSJ.com