Whatnot’s Big Win: Securing $265 Million in Latest Funding Round
Whatnot, a standout platform for selling collectibles like trading cards, comics, and sneakers via live videos, has made headlines with a major financial leap. On Wednesday, the company announced that it raised $265 million in its Series E funding round, catapulting its valuation to a staggering $4.97 billion. This monumental investment underlines the immense potential for livestream shopping to flourish in the U.S.
So, what does this mean for Whatnot and its community of sellers? For starters, it speaks volumes about investors’ confidence in Whatnot’s ability to push boundaries within the realms of collectibles and niche items—areas where it shines brightly. With new funds in hand, Whatnot is poised to broaden its horizons by venturing into diverse categories like art, golf, and vinyl.
- Expansion into more categories
- Introduction of new seller tools
- International launches in Australia and Europe
The platform isn’t just about selling; it’s about equipping sellers with the right tools. One such tool aims to streamline inventory and order management, making life easier for its users. Plus, with upcoming launches in Australia and several European markets, Whatnot is truly going global!
“Founded by Grant LaFontaine and Logan Head in 2019, Whatnot was always meant for collectors.”
{Company spokesperson}
This focus on collectors sets Whatnot apart from competitors who predominantly cater to fashion and beauty sectors. Initially starting with sports trading cards and memorabilia, Whatnot has grown to include a myriad of items like accessories, electronics, and even live plants!
A unique feature that has captured users’ attention is the “sudden death” auctions—an exhilarating format where the last bidder takes home the prize. Recently, they also launched flash sales, adding an element of urgency with customizable discounts and countdown clocks during livestreams.
In addition to these exciting developments, Whatnot introduced a rewards tool last year. This feature allows buyers to redeem rewards after achieving certain milestones—turning shopping into a more engaging experience.
Alongside the funding announcement came news of Whatnot’s first-ever tender offer to buy back up to $72 million worth of shares. This move demonstrates a solid commitment to their 600 full-time employees and reflects positively on the company’s financial health. Typically, share buybacks hint at strong performance and a capacity for reinvestment in workforce growth—whether through enhanced salaries or additional benefits.
- Round co-led by Avra, DST Global, Greycroft
- Participation from Andreessen Horowitz (a16z), CapitalG
- Total funding now approximately $746 million
Whatnot also shared that its annual gross merchandise value (GMV) for livestream sales soared past $3 billion—a significant jump from their recent report of over $2 billion GMV.
With an expanding product range and strategic innovations under its belt, Whatnot is well-positioned to continue leading the charge in the evolving landscape of livestream shopping.
