Fab.com Acquires German Company Casacanda
Fab.com has acquired German-based Casacanda in an all-stock deal valued at about $10 million. Fab.com CEO Jason Goldberg said that the acquisition will be closed on Monday. Even though the e-commerce market is not as big as it is in Europe as it is in the U.S., Goldberg believes the deal is still solid because of the strong German economy and because Germans have a strong sense of design.
“The opportunity is global and we decided, ‘Let’s do this fast before the copycats come in and take what is rightfully ours,’” stated Goldberg. Only about 7% of Fab.com’s daily traffic comes in from international users. “There’s definitely more challenges, but it’s what we’re signing up for,” stated Goldberg.
Fab.com launched as a gay community social network, but they relaunched in June as a flash sales website. About 1 million members were registered this past November and received emails. The figure grew to over 2 million members in February. Now sales are hitting about $1.5 million per week. Fab.com is expected to hit about $100 million this year. Forty percent of sales are home decor products like furniture and art.
Casacanda was started by 23-year-old co-founder and CEO Roman Kirsch. Casacanda has signed up about 250,000 members and they have generated millions in revenue since launching September. One of the unique features of Casacanda is one-click shopping that Fab.com has yet to implement.
Before this acquisition, Fab.com was unable to ship orders outside of the U.S. Now through Casacanda, they are able to utilize warehouses in Berlin and Kassel. Casacanda’s 40 employees will become join Fab.com’s current team of 170 people.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry