According to Wayfair LLC Chief Executive Officer Niraj Shah, the company would be holding a financing round first prior to doing an initial public offering. Although there was no set date yet, Wayfair has planned for an IPO sometime next year or in 2015.
In a contributor report at Forbes newsmagazine, the financing round would be part of a strategic plan by Wayfair to capitalize its accelerating growth in the e-commerce market. The company had amassed a total of USD201 million in venture capital from backers such as Spark Capital Battery Ventures.
Investors had been happy with Wayfair's recent growth, as the e-commerce company had been anticipating for a USD940 million revenue this year. The figure was a significant increase from USD600 million last year. Although it had been facing stiff competition from Amazon, Target, Williams & Sonoma and Home Depot, the Boston-based company had attributed its growth to its timed flash sales, supplier relationship, and wide access to 12,000 brands holding 7 million items.
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