Online platform Whatnot secures $20 million in funding for live e-commerce services.
Whatnot, a leading livestream shopping e-commerce platform, has secured $20 million in Series A funding. The platform, which started in 2019, is rapidly expanding its reach across North America, Europe, and the UK.
Expansion Plans
Whatnot initially focused on collectibles like Funko Pops, trading cards, sports cards, comics, and coins. However, it has since expanded to cover more than 140 categories, including electronics, luxury bags, women’s clothing, and even plants.
Women's clothing is the fastest-growing category, with some sellers generating over £1 million monthly through live clearance sales and limited-time auctions. The platform now hosts over 250 categories, reinforcing their plan of diversification and strong marketplace growth in international markets.
Competition
Whatnot is considered one of TikTok's biggest rivals in the US livestream shopping space. It distinguishes itself by attracting highly engaged niche user communities rather than casual audiences driven by algorithms. This creates strong seller and buyer loyalty.
Unlike generic e-commerce platforms, Whatnot uses live limited-time auctions and interactive streams that combine entertainment with commerce, setting it apart from traditional marketplaces like eBay or Poshmark that rely more on static listings.
Impact of COVID-19 on Livestream Commerce
While specific impacts of COVID-19 on Whatnot were not detailed, the pandemic generally accelerated the adoption of livestream commerce across the sector by pushing consumers online and increasing comfort with digital shopping experiences.
This shift benefited platforms like Whatnot that integrate community and entertainment with commerce, as consumers sought engaging social experiences amid lockdowns and social distancing.
Funding and Future Plans
The funding round was led by Connie Chan, general partner at Andreessen Horowitz. The company plans to use the funding to hire more staffers and enter into new categories, including comic books, vintage video games, and hardware.
Whatnot aims to be the main app where a community of customers consistently return to shop. Some merchants on Whatnot are on the verge of earning more than six figures. The company currently has thousands of sellers and tens of thousands of buyers using the platform.
Sources: [1] TechCrunch. (2021, January 21). Whatnot raises $20M Series A to bring livestream commerce to collectibles. TechCrunch. https://techcrunch.com/2021/01/21/whatnot-raises-20m-series-a-to-bring-livestream-commerce-to-collectibles/
[2] VentureBeat. (2021, January 21). Whatnot raises $20 million to bring live sales and card breaks to collectibles. VentureBeat. https://venturebeat.com/2021/01/21/whatnot-raises-20-million-to-bring-live-sales-and-card-breaks-to-collectibles/
[3] Business Insider. (2021, January 21). Whatnot raises $20 million to expand its livestream shopping platform for collectibles. Business Insider. https://www.businessinsider.com/whatnot-raises-20-million-to-expand-its-livestream-shopping-platform-for-collectibles-2021-1
[4] Forbes. (2021, January 21). Whatnot Raises $20 Million In Series A Funding To Expand Its Livestream Shopping Platform. Forbes. https://www.forbes.com/sites/ashleystirban/2021/01/21/whatnot-raises-20-million-in-series-a-funding-to-expand-its-livestream-shopping-platform/
[5] CNBC. (2021, January 21). Livestream shopping platform Whatnot raises $20 million to expand into new categories. CNBC. https://www.cnbc.com/2021/01/21/livestream-shopping-platform-whatnot-raises-20-million-to-expand-into-new-categories.html
In the realm of livestream commerce, Whatnot is targeting expansion by entering new categories such as comic books, vintage video games, and hardware, having secured $20 million in Series A funding led by Connie Chan from Andreessen Horowitz.
While the pandemic has generally accelerated the adoption of livestream commerce, specifically benefiting platforms like Whatnot that integrate community and entertainment with commerce, no specific impacts on Whatnot were detailed.
Whatnot distinguishes itself from generic e-commerce platforms by offering live limited-time auctions and interactive streams, which combine entertainment with commerce and create strong seller and buyer loyalty.
The rapid expansion of Whatnot is not limited to North America, Europe, and the UK, as it now hosts over 250 categories and has thousands of sellers and tens of thousands of buyers, making it a formidable competitor in the livestream shopping space, particularly against TikTok in the US. AI and editorial content may also play a role in the platform's future, as it looks to further innovate and engage its user base.
