One Kings Lane was once a fast-growing flash sale site for home furnishings that was valued at nearly $1 billion by private investors. But recently it’s been trying to find a buyer for one-quarter of that valuation, about $230 million or less, Recode’s Jason Del Rey reports.
The flash sale industry looked promising back around 2008 — 2010 when revenue was rapidly rising and investors were pouring hundreds of millions of dollars into the startup leaders, such as Fab and Gilt Groupe. Now, none of those sites seem like they will have happy endings.
Gilt Groupe, a startup that was once worth billions, recently got acquired for a mere $250 million. Fab, another near-billion-dollar startup that was like an online-only IKEA, sold its remains for about $20 million. One Kings Lane will likely fall somewhere between those two. It won’t go to zero, but Del Rey believes One Kings Lane could go for $150 million or less. The startup raised $230 million during its glory years.
If you want to learn more about why the flash sale business is imploding, here’s an in-depth look at the rise and fall of Fab.