Inside Faire: From 2017 to Now Into a $1.1 billion business
Startup Type:
Headquarter: San Francisco, USA
Current Status: Active (private; leading wholesale marketplace globally)
Founders: Max Rhodes, Marcelo Cortes, Daniele Perito, Jeff Kolovson
Founded Year: 2017
Investors: Forerunner Ventures, Sequoia Capital, Lightspeed Venture Partners
Funding Raised: $1.1 billion
What Is the business model of Faire?
Online B2B wholesale marketplace that connects independent retailers with small brands/artisans, allowing shops to buy curated inventory with flexible returns; Faire takes a cut on transactions and provides financing for inventory
How Faire got started?
Started in 2017 by ex-Square employees, Faire set out to help local boutiques compete with big box stores by easily discovering unique products from makers and ordering them wholesale, with data-driven recommendations and risk-free returns on first-time orders
what growth strategy has Faire followed?
Used a generous free return policy and net-60 payment terms to lure retailers, while offering makers analytics and broad retailer reach, creating network effects, by 2021 it grew to serve over 300,000 retailers, expanded to Europe, and achieved decacorn status
what are the top products/features of Faire
Faire wholesale marketplace, analytics dashboard for brands, Faire Direct, financing and insurance for wholesale transactions
what was the biggest challenge faced by Faire?
Two-sided marketplace challenges: had to simultaneously attract boutique retailers and indie makers in sufficient numbers, and manage the logistics and financing (net terms) to make wholesale orders smooth for small businesses with limited cash flow