Members-only home décor retailer One Kings Lane has secured $50 million in Series D financing, it announced today.
Scripps Networks Interactive, a first-time investor in the online retailer, runs television and Internet brands HGTV, Food Network, Travel Channel, DIY Network and others. The company will participate in One Kings Lane’s board going forward, the retailer says.
Scripps’ television networks’ broad appeal with home furnishings buffs makes the relationship between the two companies a natural fit, says Doug Mack, CEO of One Kings Lane. “It’s always great to close financing, but when you bring in a backer that’s in the same business that you are, it’s very legitimizing.”
One Kings Lane launched a television commercial campaign with Scripps in October and currently invests under 10% of its marketing spend on those commercials. That percentage will increase going forward, Mack says.
With a goal to increase new memberships, the merchant will also use the funds to increase its Internet marketing spend, he says, including a boost in Facebook advertisements and retargeting efforts.
Technology investments will be a major focus in 2013, Mack says, as One Kings Lane will expand its mobile program and upgrade its back-end systems that facilitate uploading new content for limited-time sales each day.
The investment caps off a year of growth for the web-only retailer, which is on track to double its sales to $200 million in 2012, he says. Holiday shopping is off to a good start, as well, with fourth quarter revenue on pace to double last year’s total. “Q4 and the week of Thanksgiving ignited something for e-commerce,” Mack says. “We have never seen Thanksgiving week as strong as this was. Around 50% of our traffic was mobile on Thanksgiving day.”
For 2012 as a whole, about 25% of One Kings Lane’s revenue comes from mobile devices and the merchant’s new mobile-optimized site, launched this quarter, has contributed to that, Mack adds. The e-retailer launched iPhone and Android apps in 2010 and is currently working on an iPad app.
Institutional Venture Partners led the new funding round. In addition to Scripps, existing investors Kleiner Perkins Caufield & Byers, Greylock Partners and Tiger Global Management contributed. One Kings Lane has raised $117 million since its founding 2009.