Trend Market Poshmark Raises $25 Million Extra, Heads To Apple Watch
Three years in the past, trend market Poshmark launched on iOS with an app that allowed ladies to purchase and promote secondhand gadgets, together with clothes, footwear and different equipment, proper from their cellular system. The corporate, which has since expanded to Android and the online as of final yr, has now grown its on-line group to incorporate tens of millions of registered customers, and is on monitor to double its income in simply six months this quarter to $200 million in annual gross sales. At present, Poshmark can also be saying $25 million in Collection C funding, with funding from Mayfield, Menlo Ventures, Inventus Capital, Union Grove Enterprise Companions, Shea Ventures, and SoftTech VC.
Up to now, Poshmark has raised $forty seven.2 million in outdoors capital.
Whereas there are a selection of rivals within the on-line style resale area at this time, together with luxurious consignment website The RealReal which additionally this month took in a further $forty million in new funding, what makes Poshmark totally different from many of those websites is that it doesn’t play intermediary in terms of managing the transactions that happen on its platform.
As an alternative, Poshmark’s consumers and sellers join with one another immediately, just like a market like eBay, for instance. Poshmark, in the meantime, merely supplies a set of instruments for these consumers and sellers to benefit from – starting from print-out delivery labels to safe cost transfers to an elective authentication service for top-finish items and extra.
As we speak, says founder and CEO Manish Chandra, there are over seven hundred,000 sellers on the platform, and, at any given time, there are over 10 million gadgets on the market on Poshmark. Additionally in contrast to websites like The RealReal, which solely focuses on the posh market, gadgets on Poshmark could be something from a $25 “quick style” article of clothes to a $5,000 purse, the CEO says.
Poshmark’s determination to fashion itself as a platform versus an organization that has to deal with stock itself has allowed the corporate to scale quickly. Its sellers add over $2 million of latest stock day by day to its service, and Poshmark processes hundreds of thousands of orders every day. The majority of the order quantity on the location is on a regular basis style, however, in fact, the sale of excessive-finish gadgets contribute extra to the underside line.
The corporate has additionally benefitted from its “cellular-first” strategy, present as an app lengthy earlier than it was ever an internet site. Right now, that focus continues to be mirrored in its consumer base, the place over ninety% of customers are on cellular, and over ninety% of income comes from cellular as nicely. And when these customers are actively shopping for or promoting, they’re extremely engaged – checking in on their gross sales seven to 9 occasions per day and spending over 20 minutes on Poshmark’s service.
“The variety of consumers and sellers has remained equal on the platform,” notes Chandra. “And that’s a testomony to our social and cellular focus,” he says. “That provides us what we consider as an infinitely scalable market the place it’s not constrained on both aspect.”
He additionally attributes Poshmark’s success to its matching algorithm, which connects ladies with related gadgets of curiosity, and Poshmark’s help for human curation, the place ladies are styling and sharing their merchandise in collections and on-line “events” for others to find.
Now, the service that started as a resale market for people promoting their very own gadgets is beginning to see a shift in its consumer base. At this time, a small however rising proportion (round 5%-7%) of sellers are shopping for wholesale items new after which reselling them on Poshmark at retail costs. And a few sellers are constructing their very own consignment outlets on Poshmark the place they promote gadgets on behalf of others. In the meantime, there’s additionally a rising variety of indie designers promoting gadgets they’ve created themselves, as they might on a website like Etsy.
Poshmark plans to faucet into this increasing “trend salesforce” of unbiased retailers who attain clients on cellular, and is hoping to attach with greater trend manufacturers who need to leverage its group to seek out new clients for themselves.
With the brand new funding, firm is planning to maneuver into new verticals, together with males’s and youngsters’s gadgets, rent extra employees, and increase internationally into elements of Europe and Asia.
The corporate at the moment can also be launching an Apple Watch app that may let shoppers maintain monitor of their favorites and their gross sales from their wrist, which Chandra admits continues to be one thing of an experiment. However it’s one he’s betting massive on – the corporate is giving all its staff an Apple Watch free of charge, in reality.
“Something that will increase the effectivity of communication and knowledge…has the chance to be a killer platform,” he says.
Nobody believed him a number of years in the past when he stated he would construct a whole market on the iPhone, Chandra factors out. “If I didn’t have a profitable firm earlier than that, I wouldn’t have even gotten a time period sheet,” he says. However Poshmark proved that cellular could possibly be a bonus when it comes to scaling its enterprise. “And if Apple Watch goes to be the subsequent killer platform…we have to be forward of the curve.”