Pinterest has bagged itself an exclusive membership into the billion dollar club, after being the latest company to be valued at over $1 billion (£630 million) after raising $100 million in a financing round.
With the funding led by Japanese e-commerce agency, Rakuten Inc, Pinterest's decision to enlist Rakuten's services paid off, given the company's global presence and its assistance in increasing the awareness of the content-sharing site. Along with participants including Andreessen Horowitz, Bessemer Venture Partners and FirstMark Capital, plus a number of other investors, this now puts Pinterest's worth in the billion dollar arena.
"While some may see e-commerce as a straightforward vending machine-like experience, we believe it is a living process where both retailers and consumers can communicate, discover, and curate to make the experience more entertaining," said Rakuten CEO Hiroshi Mikitani in a statement today. "We see tremendous synergies between Pinterest's vision and Rakuten's model for e-commerce. Rakuten looks forward to introducing Pinterest to the Japanese market as well as other markets around the world."
When the Financial Times asked what Pinterest would offer Rakuten's stores, Mikitani said: "Search is still the main driver for us. We are always looking to make our site more interesting. Pinterest is a little bit different from Facebook. Pinterest is more targeted. They use beautiful graphics very effectively to create interest circles. They are extremely good at it. Because of that, the traffic coming from Pinterest probably will have a very high conversion rate. That is why I think they are very good at this discovery shopping."