Online discount store Hollar raises $30 million and moves headquarters to Commerce
Hollar Inc., a year-old start-up aiming to re-create the dollar-store experience for the smartphone-shopping era, has raised $30 million from investors.
Hollar’s second major batch of funding, announced early Thursday, suggests that the company is making significant progress toward its goal.
Chief Executive David Yeom said Hollar exceeded $1 million in monthly sales within its first six months, but he declined to disclose current usage or sales figures.
As part of the financing, the company is leaving Santa Monica for the City of Commerce, where it is moving into a 200,000-square-foot facility once used by 99 Cents Only Stores, Yeom said. 99 Cents Only Stores maintains headquarters elsewhere in Commerce.
Yeom described the move as important both symbolically and practically. The relocation solves what he considers his biggest regret over the last year: Hollar’s workforce was separated between a Santa Monica office and a Vernon warehouse. Now that it’s all coming together in the Commerce location, Yeom expects to achieve increased productivity and innovation.
“Magic just happens,” he said.
The money also is intended to help Hollar personalize its online storefront for users and make it possible for others to sell on the service.
Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers led the new investment in Hollar, with Greycroft Partners, Comcast Ventures and previous investors also contributing cash.
Many products on Hollar run $2 to $10, including clothing, kitchen supplies and seasonal items such as Christmas decorations. Goods at launch included brand-name merchandise out of season or out of favor, supplemented by purchases from contractors in China. One of the company’s central challenges is providing an array of offerings that entices people to make big orders, justifying shipping costs.
Yeom said about 80% of shoppers are outside the states of New York and California, and about 80% of shoppers buy from their mobile devices.
The company previously raised $17.5 million.
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