today an important piece of our portfolio is born again, that is a famous American creative flash sales website announced Fab completed a $150 million D round, valued at $1 billion. Among them, the most attracting domestic concern is China’s Internet giant tencent in investment of shareholders, and into the list of the board of directors of the Fab.
there is no specific know specific investment amount, but it is understood that tencent occupy a larger proportion in the investment, also won’t enter the list of the board of directors. Tencent in international investments mainly layout before games business, this time why turned to the field of electricity? What department it up for the future?
Fab company status
with the domestic product can model some similar, but overall is a flash sales, now more focus on the creative flash power purchase business. There are 14 million users, development is still very soon. Last year, the overall revenue of $150 million. In January 2013, sales of 3 times that of January 2012. Fab can expect to win $250 million in revenue in 2013. Company gross margin was 29% in 2011, is now as high as 43%.
after this round of funding, the overall total funds reached $310 million, in the latest round of funding, overall valuation has amounted to $1 billion. Although developing rapidly raised, but the company has not yet profitable. Fab CEO Goldberg is forecast in the fourth quarter of 2014 or 2014 in the first quarter of profitability. This round of funding the proceeds will make the company have enough money to support up to 2015.
Fab is in urgent need of anything?
why not the pursuit of profit? Even its critics Fab profit ability is weak, the financing too radical, will be crushed to death by amazon (Fab lost $90 million last year). But Goldberg, apparently don’t agree with this view, otherwise, he would not melt so much money and dilution.
Goldberg, according to the board of directors of the company to discuss the result is to go to the pursuit of market share, “we have to occupy the market in advance before the various overseas clone comes out. European Fab, in fact, the emergence of the clone also is we the determined to expand catalyst.” He also cited the Zappos could become the world’s largest e-commerce sites, but now it’s a pity.
at present, as the Fab flash sales model, entrepreneurs in many countries around the world are concentrating on the market, the direction in advance before entering the domestic market in the overall market. Which has gradually made the overall loss of part of the international expansion of opportunities.
in the company’s new expansion plan, Asian and European markets become a top priority. The European version of the Fab Europe has left the company and but in Asia, Fab hasn’t really involved. Among them, the Chinese e-commerce is developing fast, for Fab is one of the biggest piece of fat.
as abroad into China Internet often encounter the company regulation, the problem such as water, more and more companies began looking for ways to collaborate with local enterprises. At home, try to do big electric dealer market a dime a dozen, but a real user superiority, the foundation of the electricity and related supporting facilities of the enterprise is not much.
how tencent will cooperate with Fab?
since tencent structure adjustment, electric business to operate independently and ambition. After clap nets, such as QQ mall and impress, combined with the domestic price war frequently, continuing losses under operation, want to win the pressure. Therefore seeking overseas high-quality mode of electric business enterprise cooperation is not a good choice, is in line with the overall requirements.
may be affected by defeat after the joint venture was established with the company, even with strong capital tencent in cooperation with foreign electricity will be more cautious, so directly on the overall company to invest in stocks. Such benefit is that even if only for financial investment can be sitting on earnings, if in a subsequent Fab into China after can occupy more initiative.
as you can imagine that way after the Fab in China can be divided into three types: one is the independent operation, so tencent is pure financial investment; The second is the joint venture was established with tencent, similar to gaopeng mode; 3 it is completely to tencent to care.
example, after the teacher of the car. EBay, AOL and sites such as myspace have failed in China must make concerns Fab and independent operation is almost impossible in China. Completely make tencent operation again afraid to hit his own brand, as a result, the two sides set up a joint venture is still the most appropriate choice.
how do specific cooperation? May be able to get some clues from Goldberg, accept foreign media interview. He said, “many companies offer an olive branch to the Fab, expressed the desire to invest. But most of them require Fab to local joint venture, and place the own brand logo in the middle of, weaken the overall brand. It is a step backward for us.”
this means also can so to understand, as long as you don’t Fab brand in China, tencent to set up joint venture company, there is no too big obstacle. But the operation was successful, that’s another story.