March 7 (Bloomberg) -- Wayfair, an online retailer of home furnishings, raised $157 million from an investor group led by T. Rowe Price Associates Inc., giving it more funding to expand ahead of a potential initial public offering.
The financing came from a limited number of key investors, including mutual funds and TripAdvisor Inc. Chief Financial Officer Julie M.B. Bradley, who serves as a Wayfair board member, according to a statement today. This funding gave the company a valuation of $2 billion, according to a person familiar with the situation, who asked not to be identified because the information is private.
Wayfair is benefiting from a shift online among home-furnishing shoppers, helping increase sales 55 percent to $915 million last year. The Boston-based company has set up meetings with banks about managing an IPO in the first half of the year, people familiar with the matter said last month.
Wayfair “has the ingredients to be a much larger company,” Henry Ellenbogen, portfolio manager for T. Rowe Price’s New Horizons Fund, said in today’s statement.
To contact the reporter on this story: Matt Townsend in New York at firstname.lastname@example.org
To contact the editors responsible for this story: Nick Turner at email@example.com Kevin Orland