In these recessionary times, everybody’s trying to save a buck on clothes and furniture. Companies are popping up all over the web, like One Kings Lane, which skip the middle man. They offer the buyer a solution to purchase directly from the source – thus cutting costs of items significantly – sometimes up to 90%.
MyFab, a Paris based startup which sells furniture on its site, has just raised €5 million, reports TechCrunch this morning. This second round of funding was led by Alven Capital and joined by BV Capital.
The difference between MyFab, and let’s say, the Macy’s furniture store, is that MyFab wants to provide buyers their snazzy couches directly from the source. So it’s partnered up with factories to directly sell these items to customers. MyFab says with this model it can save buyers up to 90% off an average retail price that somebody like Macy’s would sell for.
Currently, MyFab is offered only in French and German. This is soon to change as the new round will be used for international roll-out and expansion into other verticals including fashion.
It’s apparent that the original retail model of using a middleman, like that of Macy’s, simply isn’t working. People are trying to save a buck and with the technology of today, MyFab is doing something truly progressive by cutting that middleman and connecting buyers directly to the source.
