Zulily Has Filed For A $100 Million IPO

Posted Oct 8, 2013

Zulily has revealed that they are filing for an initial public offering of up to $100 million.  Based in Seattle, Zulily made a filing with the Securities and Exchange Commission (SEC) earlier this year.  Zulily was founded in 2009 and is expected to report their first annual profit this year.  For the first six months of this year, Zulily reported $2.4 million in profit as their sales more than doubled (compared to a year ago) to $272 million.  Zulily is known for selling clothing for women and children.

The company uses a flash sales model where products have deep discounts for a limited period of time.  Zulily competes against services like Gilt Groupe, LivingSocial, and Groupon.  Zulily has 2.2 million active customers, who have made at least one purchase in the last year.  This is almost double their active customer count compared to the prior year period.

Some of the largest shareholders in Zulily include co-founders Mark Vadon (30.4%) and Darrell Cavens (20.9%).  Vadon and Cavens both worked at Blue Nile Inc.  Other investors include Maveron (23.6%), August Capital (7.5%), and Andreessen Horowitz (7.3%).

Zulily raised $85 million in funding led by Andreessen Horowitz this past November at a $1 billion valuation.  Today the company has a $1.7 billion valuation on their equity, according to the SEC filings for the IPO.  Zulily will be using the proceeds from the IPO for general corporate purposes and for potential acquisitions.  Goldman Sachs Group,  Bank of America Merrill Lynch, and Citigroup will be leading the IPO.  RBC Capital Markets, Allen & Company, and William Blair will be the underwriters.  Zulily will be listed on the Nasdaq Global Select Market with the symbol “ZU.”

[Source: WSJ]