With sales taking off, online marketplace Jet.com has raised a $500 million Series B funding round aimed at helping fuel its growth.
The financing round includes $350 million initially with another $150 million infusion projected to come in in the near future, the company said. As reported when word of the funding round surfaced three weeks ago, investment firm Fidelity Investments led this round, which brings Jet’s overall funding total to $720 million, according to CrunchBase. Jet says this funding round values the company at $1 billion.
“We’re thrilled with the response we’ve seen from both our members and retail partners,” CEO Marc Lore said in a statement.
Jet.com did not specify how it plans to spend its latest infusion of cash. In an interview with Internet Retailer earlier this month, Jet.com chief operating officer Nate Faust said the company had surpassed the 1 million customer mark in late October, ahead of its year-end goal The company says it did $33.2 million in sales during October, which represented month-over-month growth of 65%.
Jet launched to great fanfare in late July, charging members a $49.99 annual membership fee and promising to offer goods at a lower cost than online rivals. Just three months later, Jet changed its business model, removing the membership fee before customers were charged and opening the e-commerce site to all consumers.