Fab.com acquires Finnish furniture company
E-commerce company Fab.com is acquiring a Finnish furniture company that sells products online, according to Re/Code. Fab.com confirmed the deal for the cash and stock deal, but did not disclose the price. Fab.com will likely launch a new website that will sell the custom furniture online. Home furnishings are Fab.com’s most profitable business stream so this acquisition should cause a surge in sales.
Currently Fab.com is burning around $1.6 million per month, but it has enough cash to last for at least the next several years. Valleywag reported earlier this week that Fab.com was burning as much as $9 million, but CEO Jason Goldberg corrected that information. To streamline operations, Fab.com had to layoff staff in the U.S., India, and Europe.
Fab.com raised over $330 million in funding, but has been dealing with traffic declines, executive shuffling, and product pivots.