800.com Inc., an online retailer of electronics, has landed a $20 million round of venture funding and a $15 million line of credit. Greg Drew, 800.com’s founder and CEO, said the funding “reflects the success of 800.com’s unique, specialty approach to direct-to-consumer electronics retail.”
Lead investor OVP Venture Partners’ Gerry Langeler said the funding demonstrates “full appreciation for 800.com’s business model,” adding that “800.com has the brands, the product expertise, the selection, the management team and the infrastructure of a major retail enterprise. In today’s challenging market this is a serious win – 800.com’s continued growth and imminent profitability are assured.”
The funding follows 800.com’s May asset acquisition of Roxy.com and EverythingWireless, a top-ten online electronics retailer and a leading direct marketer of cellular phones - a deal that brought 800.com 50% more database names, two URLs, a stronger satellite TV presence, and immediate entry into the cellular phone business.
This round of financing - 800.com’s fifth - brings its total equity funding to $121 million. Leading the Series E round, comprised largely of returning investors, was OVP Venture Partners, joined by Vulcan Ventures, Trinity Ventures, APV Venture Partners, Leverick Ltd., Portage Ventures and SAAD Investments Geneva. The $15 million line of credit came from Fleet Retail Finance.
800.com will use the financing as working capital to broaden its penetration into additional consumer electronics categories, to explore new channels of distribution and to expand direct marketing efforts both online and offline.