Another day, another giant investment round for an American online retailer.
Wayfair said on Friday that mutual fund giant T. Rowe Price is leading a $157 million investment in the Boston-based seller of furniture and home decor, pushing total funding above $350 million.
The company, which was founded as CSN Stores 12 years ago, is widely believed to be gearing up for an IPO in the next year after it pulled in more than $900 million in revenue in 2013. The investment comes a month after competitor One Kings Lane, which sells higher-end home furnishings online, said it had received a $112 million investment.
Wayfair sells discounted furniture, some of which is offered in short bursts in a model commonly referred to as “flash sales.” The model had been written off as an unsustainable fad in some circles, but fellow flash sales company Zulily went public in a successful IPO last year and industry pioneer Gilt Groupe is said to be planning to go public by year’s end.