New York based online retail site Fab.com has acquired Pune-based technology venture True Sparrow Systems in a cash-and-stock deal, reports The Economic Times.
The financial details of the deal have not been disclosed, yet. It’s not clear whether the entire team of True Sparrow System consisting of 85 people will continue to work from Pune.
What’s interesting is that True Sparrow System had been providing technology backend to Fab.com since its inception in 2011. Fab.com and True Sparrow System worked as separate entities, even though True Sparrow Systems worked exclusively with Fab.
Founded in 2007, True Sparrow Systems was founded by husband and wife duo, Nishith and Deepa Shah. In 2010, Jason Goldberg, CEO and co-founder of Fab.com, partnered with True Sparrow System to launch Fabulis, a social networking site targeted at gay men. However, in 2011 when the social networking site did not generate much traction, Goldberg pivoted the business to an eCommerce site for design centric product and renamed the company to Fab.com. Nishith and Deepa Shah are also co-founders of Fab.com.
Prior to founding Fabulis, Goldberg had founded SocialMedian, a social news aggregator, which was acquired by Xing.com, a European professional networking site. True Sparrow Systems, its Indian team had received both cash and equity through the deal.
Fab.com recently raised $15 million investment from VTB Capital and Phenomen Ventures. Prior to that, Fab had raised $105 million in a series C financing round led by Atomico to help pursue these goals. Andreessen Horowitz, Menlo Ventures, First Round Capital, David Bohnett’s Baroda Ventures, ru-Net Technology Partners (RTP), Pinnacle Ventures, Docomo Capital, Mayfield Fund, and Troy Carter all participated in the round. Overall the company has raised over $150 million of funding. Fab has also acquired Llustre, Casacanda.de, and Fashion Stake, an e-commerce company featuring independent designers hand picked by the community, this year. This makes True Sparrow the only tech company acquired by Fab.