Livestream shopping app Whatnot raises $265 million, pegs valuation at around $5 billion
WhatThe platform, which allows users to sell items such as trading cards, comics and sneakers through live videos, announced Wednesday that it has secured $265 million in a Series E funding round, a major investment for a live streaming shopping platform. This round puts Whatnot’s valuation at $4.97 billion.
The investment represents an important milestone for Whatnot and highlights the growth potential of live streaming shopping in the US. The large sum raised reflects investors’ belief that Whatnot can further innovate in this area, particularly in collectibles and specialty items, which is Whatnot’s focus area.
The new capital will be dedicated to expanding into more categories, including art, golf and vinyl. Whatnot is also working on new seller tools designed to help sellers grow their businesses. One such tool aims to simplify inventory and order management for sellers.
Whatnot also plans to launch in Australia next month as well as other markets in Europe later this year. It is currently available in the US, UK, Canada, France, Germany, Austria, Netherlands, and Belgium.
Founded by Grant LaFontaine and Logan Head in 2019, Whatnot is today a platform for collectors, setting itself apart from competitors focused on fashion and beauty products. Initially centered on sports trading cards, action figures, comic books, and memorabilia, they have expanded over time to include accessories, apparel, electronics, live plants, and more.
A main feature of the platform is “sudden death” auctions, where the last bidder wins the lot. Recently, Whatnot introduced a new selling method called flash sales, which allows sellers to offer customizable, time-sensitive discounts on products. During the live broadcast, the countdown clock creates a sense of urgency among buyers. Last year, the platform launched a new rewards tool that allows buyers to redeem rewards from sellers after completing certain achievements and leveling up.
Along with the financing announcement, Whatnot said it plans to launch its first-ever tender offer to buy back shares worth up to $72 million. The company told us the move reflects its commitment to investing in its 600 full-time employees. Stock buybacks often indicate that a company is performing well and can invest in its workforce, whether through salaries, benefits or other investments.
The round was led by Avra, DST Global, and Greycroft, with participation from Andreessen Horowitz (a16z), CapitalG, BOND, Durable Capital Partners, and Y Combinator. To date, Whatnot has raised about $746 million.
Whatnot also revealed that the annual gross merchandise value (GMV) of live streaming sales exceeded $3 billion after recently Preparing reports Annual GMV of over $2 billion.
