Jet.com is close to raising between $500 million and $550 million in a round of venture capital funding led by Fidelity Investments. Fidelity is set to invest $90 million in the round, according to The Wall Street Journal. The investment would give the e-Commerce startup a valuation of $1.5 billion, sources close to the company told Fortune.
The round is not yet closed and will likely include additional capital from existing investors. Fidelity presently values Jet at $1 billion. Jet and Fidelity have not commented on the funding. With the funding, Jet can supplement its draining cash flow, which WSJ reports lies at $63 million as of October 2015. Jet is on pace to spend $76 million in November and December, largely on marketing initiatives.
With the expected round, total funding in Jet.com will skyrocket to as much as $770 million. The e-Commerce player, which has set its sights on Amazon since former Amazon exec Marc Lore founded the company, raised $220 million before it began offering its services in July.
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The valuation comes at a crossroads for the company, as there are now questions regarding its business model going forward. In October, the e-Commerce marketplace dropped its $50 annual membership fee, effectively eliminating its primary source of revenue.
With the holiday season ramping up within the next few weeks, Jet.com will have its first opportunity to showcase its offering on a massive scale. The marketplace has yet to reveal any promotions for the upcoming season, or how it plans to deal with the season’s heightened consumer activity.
