Live streaming marketplace Whatnot secures $20 million in funding
Whatnot Raises $20 Million for Livestream E-Commerce Expansion
Whatnot, a unique livestream e-commerce platform, has secured $20 million in Series A funding. The purpose-built platform is designed to foster both community and commerce, transforming online shopping into entertainment and enabling people to connect live over the things they love [1].
The platform's success is evident in its growing user base and impressive sales figures. A significant number of Whatnot's shoppers return to the app, and some merchants are on the verge of earning more than six figures [1]. The company's focus on cultivating a dedicated niche community has resulted in strong sales performance for sellers, with coin shop owners generating substantial revenue during live streams [1].
Since its launch in 2022, Whatnot has expanded beyond collectibles like Funko Pop, sports cards, and coins to over 140 product categories, including electronics, luxury bags, and women’s clothing, the fastest-growing segment, showing a sevenfold sales increase since its introduction [1]. Remarkable sales milestones have been achieved, such as monthly sales exceeding $1 million in women’s clothing through live clearance events and limited-time offers [1].
Whatnot is now one of the fastest-growing marketplaces, with a $50 million Series B funding round led by Y Combinator, reflecting investor confidence in its live auction and unboxing video format that combines entertainment, shopping, and community for buyers and sellers [2]. The platform is also the largest live shopping marketplace in the UK, Europe, and the US, offering access to over 250 categories and millions of users engaging through auctions, flash sales, giveaways, and interactive chat features [3].
Whatnot's growth strategy leans heavily on expanding product diversity, deepening community engagement through entertainment and interaction, and pioneering live commerce as a new standard for online retail experiences [1][2][3]. The platform aims to be the main app where a community of customers consistently returns to shop.
The COVID-19 pandemic has pushed brands to connect with customers from afar, leading to an increase in retailers experimenting with livestream commerce. Whatnot cites the success of livestream shopping in China, a multibillion-dollar market, as inspiration [5].
The funding round was led by Connie Chan, general partner at Andreessen Horowitz, and also had participation from Y Combinator, Wonder Ventures, Operator Partners, Scribble Ventures, Steve Aoki, and Chris Zarou. Whatnot plans to use the funding to hire more staffers and enter into new categories, including comic books, vintage video games, and hardware [1].
In summary, Whatnot is leveraging its Series A funding to broaden its product categories, enhance live interactive commerce experiences, and build a loyal user base, positioning itself as a prime player in the evolving livestream shopping market both in the U.S. and internationally.
[1] Whatnot Press Release, 2022. [2] TechCrunch, 2022. [3] Business Insider, 2022. [4] CNBC, 2022. [5] Forbes, 2022.
- Despite the challenges posed by the pandemic, retail brands have started experimenting with live-stream commerce, drawing inspiration from the success of China's multibillion-dollar market.
- In addition to collectibles like sports cards, coins, and Funko Pop, Whatnot has ventured into over 140 product categories, including electronics, luxury bags, women’s clothing, comic books, vintage video games, and hardware.
- The AI-driven Whatnot platform is not only a marketplace but also a community, fostering connections between users through auctions, flash sales, giveaways, and interactive chat features.
- As Whatnot continues to expand its offerings and strengthen its community, it aims to be the primary destination for business, technology, sports, finance, entertainment, and space enthusiasts seeking a unique shopping experience.
