Flash sales website Fab.com acquired fashion-focused daily deals site FashionStake on Friday for an undisclosed amount.
The deal marks the first acquisition for Fab, and follows a $40m series B round raised last month from venture capital (VC) firms Menlo Ventures, Andreessen Horowitz, First Round Capital, Baroda Ventures and SoftTech VC.
Additional investors in Fab, which has raised a total of about $51m over the last two years, include media firm the Washington Post Company, VC firm Zelkova Ventures, microfund SV Angel and a host of angels including Allen Morgan, David Tisch and actor Ashton Kutcher.
Although both firms operate a daily deal model, FashionStake has been more of a marketplace for independent designers while Fab’s focus rests on more on general design. Fab is looking to use FashionStake’s experience in its own field to expand its operations into fashion as well as design.
Jason Goldberg, chief executive officer of Fab, said: "We’re going to do the exact same thing we’ve done with design products to fashion. Make no mistake, we’re keenly aware that there are plenty of sites that sell high-end fashion for a discount. That’s not Fab."
Vivian Weng and Daniel Gulati, co-founders of FashionStake, will join the Fab staff in the aftermath of the acquisition.