Fab.com started off as Fabulis, a social network for the gay community, but pivoted to a daily design deals site.
This is the second Pune-startup by Jason Goldberg, co-founder and CEO of Fab.com. Earlier, he had started social|median, again with True Sparrow Systems of Pune, and this had a successful exit to Xing in less than an year.
In general, Jason Goldberg seems to have perfected the art of co-founding a startup with a development team in fully in Pune. This is not outsourcing in the regular sense of the word; he works with Pune based True Sparrow to build a dedicated team for his startup, he works very closely with the team, involving them in the conceptualization, architecture and design of the product, and spends one week out of every 6 in Pune. For more details on how he does this, check out this PuneTech post from his social median days: How social|median is Developed out of Pune
In any case, the full article about Fab.com’s funding is here