Yesterday New York-based startup Fancy, which takes Pinterest’s social scrapbooking use case and connects it with commerce, posted a regulatory filing showing it nabbed a $26 million funding round.
Fancy’s latest round is well short of the $100 million round Pinterest raised in May, but there is a good reason for that. Pinterest is bigger. Its site attracted 25.3 million U.S. unique visitors last month to crack the list of top 50 domestic sites, according to comScore. Though not an apples-to-apples comparison, Fancy has more than 2 million registered users, said Fancy COO Michael Silverman in an email. But Fancy is the only one to have begun monetizing its users.
Pinterest relies mainly on investor funding to pay the bills (read: costs), whereas Fancy operates a couple businesses to rake in the bills (read: dollars). In February, Fancy got into the e-commerce game so that merchants could sell products posted on the site and later in the mobile apps. That business now averages more than $200,000 per week in sales, and Fancy is looking to catalyze growth going into the holiday season by today rolling out Fancy Gift Cards that users can send to each other to buy products featured on its sites or mobile apps, Silverman said.
Last month, Fancy entered the subscription commerce business popularized by companies like Birchbox and has since signed up more than 6,000 subscribers who pay $30 per month to receive a box containing $60 worth of products. That subscriber base translates into a new $2-million-plus annual revenue stream, Silverman said.
Those numbers are sure to delight Fancy’s star-studded board of directors, which includes Twitter cofounder and Square founder Jack Dorsey, American Express vice chairman Ed Gilligan, French fashion giant PPR CEO Francois-Henri Pinault and Facebook cofounder Chris Hughes.