Fab.com

Fab.com is an ecommerce company, which was founded by Jason Goldberg, Bradford Shane Shellhammer, Nishith Shah, and Deepa Shah. It took the company five months to reach the millionth customer mark. The company attributes the growing customer base to positive word of mouth and sharing on various social networking sites. The company offers rewards to customers to get their friends join, $30 for making 10 friends join, another $30 for getting another 25 friends, and free shipping for two months on making 50 friends join the site. The growth shows that referring friends in return for rewards, still attracts new subscribers.

The company attributes 50 percent of its membership from social sharing, and the remaining from daily emails, direct visitors, and organic search on various search engines. It currently has more than 1.65 million users. The company had raised $40 million in funds from Andreessen Horotwitz, Menlo Ventures, First Round Capital, Baroda Ventures, SoftTech VC, and A-Grade Investments, bringing its total funds to $51 million. It had also acquired FashionStake, an ecommerce company which features independent designers.