Online design store Fab.com is just seven months old, but it’s gaining all kinds of momentum, racking up 1.65 million users, including 350,000 in the last month and 750,000 items sold so far. Now, the company is making its first acquisition, beefing up in its biggest category: fashion.
Fab.com is buying fellow New York City start-up FashionStake, an online marketplace for independent fashion. The terms of the deal haven’t been disclosed, but FashionStake’s two founders — Vivian Weng and Daniel Gulati – will join Fab and help the company build out its fashion business. FashionStake will close immediately as a result of the sale.
Fab’s CEO Jason Goldberg said Fab Body, the category for clothes and accessories, has been the biggest seller for Fab, and when the company looked to make an acquisition in this space, people pointed them toward FashionStake. FashionStake features more than 200 independent designers and uses an interesting crowdsourced voting booth to let users determine what should go on sale.
Goldberg said Fab will initially tap FashionStake’s supplier relationships to bring in a lot more fashion products. Over time, Fab will look at adopting other things from FashionStake, including its crowdsource features. Fab already takes some cues from its users’ Inspiration Walls, but it could enhance that through user voting. Goldberg said the company will also be looking at other strategic pick-ups to build out its business.
“We will look at various ways to grow Fab organically and transactionally. We won’t be shy at looking at various ways to accelerate growth in areas where the data tells us to move faster in. We’re serious about building a long-term business and we’ll look at all the tools to do so,” Goldberg said.
The deal highlights the fast pace of growth at Fab.com, which has grown to about 100 employees, up from four people at this time last year. In December, the company secured $40 million in funding from Andreessen Horowitz, Menlo Ventures, First Round Capital, Baroda Ventures, SoftTech VC, and Ashton Kutcher – Guy Oseary and A-Grade Investments. It has also been nominated for two Crunchies for best shopping app and best new start-up. And as I wrote about earlier this week, it’s seeing some big business in mobile as users shop through smartphones and tablets.