On Tuesday, online retailer Fab.announced that it was cutting 100 jobs. And on Wednesday night, Fab announced that it raised $10 million from SingTel Innov8 (the venture capital arm of Singapore’s SingTel Group).
The $10 million adds to Fab’s $150 million series D fund so far, and this partnership also signals Fab’s intention to expand to the Asian market. The company is still raising more money and will announce more partners in the future.
“SingTel has a lot in common with Fab — they serve a growing, young, and sophisticated population of consumers who are looking for lifestyle products to reflect their optimistic, dynamic and vibrant approach to life,” Fab CEO Jason Goldberg said in a blog post. Goldberg said that Fab, which already operates in North America and Europe, is “very pleased to have SingTel’s insight as we explore our expansion plans in the Asia region.”
Goldberg’s post also did make reference to the recent shifts at the company where more than 100 employees in Berlin, Germany were let go.
Fab CEO Jason Goldberg was quoted in the report saying that the 15 percent reduction in total headcount came about because the company is shifting its business model. When Fab was primarily focused on flash sales, Goldberg told AllThingsD, it was virtually necessary to have parallel operations in Europe and the United States, but now that the company is transitioning into a more conventional online store, many positions could be either eliminated or moved to New York
In its report, TechCrunch noted that Fab is not yet profitable in the US or Europe, though the company has set a goal of passing that threshold either in late 2014 or early 2015