Zappos.com, Inc. closed on a $20 million round of equity funding from Sequoia Capital and also announced an increase of their revolving line of credit with Wells Fargo Business Credit to $40 million. The funds will be used to support the company's rapid sales growth and to improve the customer experience. Zappos.com is expecting to surpass $175 million in gross merchandise sales this year.
Michael Moritz will be the active partner from Sequoia Capital and has joined the Zappos.com Board of Directors. “We were impressed with the focus that Zappos.com has on service and creating the best possible online shopping experience,” Moritz said. “They may sell just shoes and handbags today, but in the long term, the brand will be about the service, not about the shoes. We think there is an opportunity here to create a long-lasting, compelling consumer brand focused on service.”
Jeffrey Cristol will continue to be the active Relationship Manager from Wells Fargo Business Credit handling the Zappos.com account. “We have enjoyed working with Zappos.com for the past one and a half years,” Cristol said. “It has been exciting to watch their impressive growth and support them along the way.”
