Poshmark, which provides an online marketplace to buy and sell fashion items, announced today that it has raised $87.5 million in a round led by Temasek. Mayfield, Menlo Ventures, GGV Capital, Inventus Capital, Uncork Capital, Union Grove Venture Partners, and Cross Creek Advisors also participated.
Founded in 2011, the Redwood City, California-based startup has created what it calls a “social marketplace for fashion” where anyone can buy, sell, and share their style with others. Think eBay meets Instagram, but for fashion.
“The main difference between Poshmark and our competitors is that the company doesn’t focus on merchandise (or hold merchandise); it focuses on people,” wrote Poshmark founder and CEO Manish Chandra, in an email to VentureBeat. “Poshmark connects people to one another through their shared connection over fashion.”
The startup leverages social media platforms by connecting users to their friends. “When you sign up for Poshmark, you’re able to ‘friend’ all of your Facebook and Twitter friends who are already on the app,” he added.
Users can access Poshmark’s marketplace via the website and through the app, which is available on both iOS and Android. Sellers and buyers can then interact freely to exchange styles, share images, and make transactions.
According to Chandra, over 3 million sellers curate 7 to 8 million items on Poshmark each day, “creating one of the largest and most personal online fashion malls for the Instagram generation.” There are over 25 million items for sale from over 5,000 brands on the platform, according to the startup. These include Gucci, J.Crew, Louis Vuitton, Nike, and Tory Burch.
Poshmark monetizes on a transaction basis. For all sales under $15, Poshmark takes a flat commission of $2.95 — sellers keep the rest. For sales of $15 or more, sellers keep 80 percent of the sale price, and Poshmark collects the remaining 20 percent.
Poshmark also partners with brands that make up its Wholesale Marketplace, which is a specific section of the app where qualified community members can shop for wholesale merchandise. The startup currently partners with 100 brands, including Style Mafia and Snob Essentials.
To retain the millennial generation’s fleeting attention span, Poshmark has today unveiled a new product — Stylist Match, using Amazon Alexa. Users can say, “Alexa, ask Poshmark to style me,” choose a theme like Date Night or Cocktail Party, and receive curated looks from stylists in the Poshmark community.
Image Credit: Poshmark
Competitors in the online fashion retail space include The RealReal, ThredUp, and Rebagg, which recently
- Online fashion retailer Stitch Fix closes up 1% on its first day of trading, after raising $120M in a downsized IPO (Katie Roof/TechCrunch)
- eBay takes on The RealReal and other fashion resellers with launch of authentication program for luxury goods, debuting with 12 high-end brands including Gucci (Sarah Perez/TechCrunch)
- Letgo adds housing listings to its popular used goods marketplace app (Sarah Perez/TechCrunch)
- Walmart announces Mobile Express Returns program to refund and exchange online items in physical stores, to launch in November and roll out to all US locations (Ingrid Lunden/TechCrunch)
- Pew: 26% of US adults get news from two or more social media sites, up from 15% in 2013 and 18% in 2016; 50% of Facebook news users get news via Facebook alone (Elizabeth Grieco/Pew Research Center)
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