One Kings Lane Raises $112 Million at a Nearly $1 Billion Valuation
One Kings Lane, the online home decor retailer, said it has raised a whopping $112 million in new funding, which it will use to expand its operations and technology. The investment gives the company a $912 million post-money valuation.
The new lead investor in this latest round is Mousse Partners, which has invested in a number of other online e-commerce companies such as Bonobos and Red Envelope. As part of the transaction, Mousse chairman Charles Heilbronn will join the One Kings Lane board.
Along with Mousse, Fidelity is also a new investor, said sources, along with one other large institutional firm. One Kings Lane declined to comment on the names of the other new investors.
With this large funding, the company has raised $229 million in total. All existing investors participated in the round including Scripps Networks Interactive, Kleiner Perkins, Greylock Partners, IVP and Tiger Global Management.
“We want and need to make a huge push on tech, data and design,” said CEO Doug Mack about the funding. “It’s a unique time to do this as the market moves to embracing the idea of buying home decor online.”
Thus far, despite all the piles of dough, One Kings Lane remains unprofitable.
Interestingly, Mack noted that the new investment will not be aimed at international expansion, which is what 1stdibs plans to use part of its recent funding of $15 million from China’s Alibaba Group for.
“Right now, we are completely focused in North America, because the U.S. home decor market is huge,” said Mack, noting that dollars are moving from traditional retailers like Pottery Barn and Williams Sonoma to sites like One Kings Lane. “The spending shift is from offline to online and many consumers still don’t know our brand in the way they will.”
Instead, he said, One Kings Lane will put more focus on newer brands such as Hunter’s Alley, a site aimed at allowing its users to sell items they own to other customers, which One Kings Lane launched last May.
And, for those who care about such things — hello, Anthony — Goldman Sachs worked for One Kings Lane on the transaction.