This startup nipping on Pinterest's heels could already be worth $3 billion
Feb 28, 2015, 01:20 IST
Wish.comWish.com offers bargains to about 50 million shoppers Wish.com is raising a new round of capital, sources tell Business Insider. According to one source, this online shopping startup - which competes against Pinterest and Amazon - will be valued between $2 billion and $3 billion when its fundraising is complete.Specifics, including revenue, were not available, but Wish's user base has been growing substantially, sources said.Wish was launched by Google veteran Peter Szulczewski and Yahoo! veteran Danny Zhang in 2011.
Online shoppers are flocking to Wish's app
As mobile users scroll through a never-ending array of products, they have two options: 'buy,' or 'save.' Either way, users are providing Wish with valuable information to tailor their personalized list of offerings better (and, better still, when they buy something, the startup gets a healthy cut of the sale). A look at its metrics on AppAnnie, which measures app engagement, shows Wish is usually among the top 100 iPhone applications used (on any given day, for comparison, Pinterest is typically among the top 25 most used iPhone apps).Prior reports pegged the company's user base between 25 and 30 million, but the App Annie profile of Wish states that 50 million people use the app to shop.
The company, based in San Francisco, charges merchants a 15% transaction fee, and the scale of its network is apparently enough to keep retailers on board.The app offers items at a substantial discount, direct from merchants, and also offers hourly bargains to shoppers that tick off the seconds until the deal expires, right on mobile users' screens.