Jet.com Nets $350 Million in New Funding
Nov. 30, 2015
E-commerce startup Jet.com, which intends to compete with the Amazon juggernaut, during the holiday week closed on $350 million in new funding with $150 million more on the way, according to published reports. Fidelity Investments, the Boston-based mutual-fund giant, led the round, which puts its valuation at $1.35 billion. When the $150 million round closes, on which Jet confirmed to Re/code it has “verbal commitments,” Jet will have raised a total of $770 million.
The company, based in Hoboken, N.J. and founded by former Diapers.com founder Marc Lore, aims to be able to undercut Amazon on price by offering deeper discounts for each additional item shoppers add to their shopping carts. The company originally was going to charge a membership fee for even lower prices, but that plan was scrapped, according to reports.
In addition to Fidelity, existing investors were involved in the new round. Although Jet did not confirm which ones, companies including Chinese Internet giant Alibaba, Bain Capital, Norwest Venture Partners and Goldman Sachs have previously invested in Jet.