Fab.com Inc. said it raised $150 million from investors including China's Tencent Holdings Ltd., valuing the 2-year-old online retailer of uniquely designed home goods at about $1 billion.

Fab is the World's Design Store. The firm is on a mission to help people better their lives with design. Millions of people around the world use Fab to discover everyday design products at great prices, to connect with the world's most exciting designers, and to share their favorite design inspirations.