Billion-Dollar E-Commerce Flash Sales Startup Zulily Hires Banks For Possible IPO

Billion-Dollar E-Commerce Startup Zulily Hires Banks For Possible IPO

ALISTAIR BARRREUTERS JUL. 24, 2013, 3:40 PM 1,286

SAN FRANCISCO (Reuters) – Zulily hired investment banks in recent weeks to advise the fast-growing e-commerce company on a possible initial public offering, according to two people familiar with the situation.

Zulily, a “flash sales” company founded by former Blue Nile executives Mark Vadon and Darrell Cavens, tapped Goldman Sachs, Citigroup’s investment bank and Bank of America Merrill Lynch, for the IPO push, according to one of the people.Zulily is one of the first of a new crop of e-commerce companies to try to go public. Other e-commerce start-ups eyed for potential IPOs by bankers include Etsy, Gilt and Wayfair, according to the other person.

The people requested anonymity because Zulily’s plans are private. Zulily spokeswoman Laura Jones declined to comment. Spokesmen at the banks declined to comment.

Zulily’s move comes less than a year after the company raised $85 million in a deal led by venture capital firm Andreessen Horowitz that valued it at about $1 billion.

Flash sales companies sell merchandise in short term, heavily discounted events each day. The sector grew fast after the 2008 financial crisis, but not all companies have thrived more recently.

Amazon.com Inc, the world’s largest Internet retailer, has its own flash sales business called MYHABIT, and investors are generally wary of other e-commerce companies because Amazon is so dominant.

However, Zulily’s focus on kids’ apparel and mothers as shoppers has helped the company grow quickly. Founded in 2009, the company said late last year that it had 10 million members and featured 35 sales events daily.

“We are impressed with Zulily’s strategic positioning,” Jeff Jordan, a partner at Andreessen Horowitz and former eBay executive, wrote in a November blog soon after the firm’s investment in Zulily.

“One reality in e-commerce today is that you want to avoid trying to compete directly with Amazon, who is hyper-aggressive in leveraging their enormous scale and cost advantage to offer the largest selection and lowest prices on the Internet,” Jordan added. “Zulily does this by aggregating a long tail of talented designers who typically lack extensive national distribution.”

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

One Response to Billion-Dollar E-Commerce Flash Sales Startup Zulily Hires Banks For Possible IPO

  1. Pingback: 90%OFF! Flash Salesの可能性 | E-COMMERCE BUSINESS BLOG

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: