Jet, an online shopping portal founded by Pennsylvania graduate Marc Lore and is yet to launch, has secured $80m in series A backing.
In a round led by New Enterprise Associates, the US-based firm secured $55m, with additional support from venture firms Bain Capital Ventures, Accel Partners, and High Peaks. MentorTech, a seed to early-stage investor in companies stemming from Pennsylvania University, also invested. In addition, Jet also secured $20m from Western Technology Investments, and a further $5m asset-backed facility from Silicon Valley Bank.
Prior to Jet, Lore founded Diapers.com, and subsequently sold it to Amazon for $550m. Now, Jet is looking to go head on with Amazon by aiming to provide the lowest prices for goods on the internet.
Jet is utilising a membership model, similar to that of retailer Costco, to be able to offer prices that are lower than any other retailer online, including Amazon. Customers for the site will have to pay an annual fee of $50 for the privilege, but Jet estimates that the average customer will save around $150 per year compared to other online shopping portals.
The site is go to due live later this year.
