This startup nipping on Pinterest's heels could already be worth $3 billion

Wish landing pageWish.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 $US2 billion and $US3 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 personalised 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.

AppAnnie.com Wish usage trackingAppAnnie.comWish’s app engagement has been on the rise over the last 12 months

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.

Valuations for privately-held e-commerce startups are skyrocketing

Pinterest — also based in San Francisco — has raised more than $US750 million, not counting the current round it is reportedly pursuing that would make it worth an anticipated $US11 billion.

Wish has raised about $US80 million to date, not counting the current round.

Prior reports under-sold how well the startup’s growth had progressed; TechCrunch reported in fall 2014 that it would raise new money — but at a valuation of $US1 billion. Less than a year ago, a WSJ report pegged the company’s valuation at around $US400 million. It was also reported by TechCrunch that Digital Sky Technologies was interested, in 2014, but other large investors have also considered backing Wish, and sources declined to say would would lead the round. It isn’t yet clear how much cash Wish will raise.

Prior backers include GGV Capital (which just raised $US450 million to top off existing investments), Legend Capital and Founder’s Fund, among a slew of individual technology investors and Jared Leto, as well, according to Crunchbase.

Business Insider sought several executives, both investors and employees at Wish, for comment. None responded by publication time.

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