Whatnot Secures $265 Million in Series E Funding Round, Valuation Reaches $4.97 Billion
Whatnot, the innovative platform that enables users to sell items like trading cards, comics, and sneakers through live videos, made a major announcement on Wednesday. The company has successfully raised $265 million in a Series E funding round, a substantial investment for a livestream shopping platform. This funding round has propelled Whatnot’s valuation to $4.97 billion.
This investment milestone signifies a significant achievement for Whatnot and underscores the potential for growth in the livestream shopping sector in the United States. The substantial amount raised reflects investors’ confidence in Whatnot’s ability to further innovate in the space, particularly in the realm of collectibles and niche items, which is the platform’s primary focus.
The newly acquired capital will be utilized for expanding into additional categories, such as art, golf, and vinyl. Whatnot is also in the process of developing new seller tools that are geared towards assisting sellers in expanding their businesses. One of these tools is designed to streamline inventory and order management for sellers.
Additionally, Whatnot has plans to launch in Australia next month, with further expansion into European markets later this year. Currently available in the U.S., the U.K., Canada, France, Germany, Austria, The Netherlands, and Belgium, Whatnot is poised for continued global growth.
Established by Grant LaFontaine and Logan Head in 2019, Whatnot’s platform caters to collectors, setting itself apart from competitors that focus on fashion and beauty products. Initially centered around sports trading cards, action figures, comic books, and memorabilia, the platform has since broadened its offerings to include a diverse range of products, from accessories and clothing to electronics and live plants.
One of the standout features of the platform is its “sudden death” auctions, where the final bidder secures the item. Recently, Whatnot introduced a new selling method called flash sales, enabling sellers to offer customizable, time-sensitive discounts on products. During livestreams, a countdown clock heightens the sense of urgency among buyers. Last year, the platform introduced a rewards tool that allows buyers to redeem rewards from sellers upon reaching certain achievements and leveling up.
In conjunction with the funding news, Whatnot announced its intention to launch its first-ever tender offer to repurchase up to $72 million worth of shares. This move underscores the company’s commitment to investing in its workforce of 600 full-time employees. Share buybacks often indicate a company’s strong performance and ability to invest in its employees through salaries, benefits, and other avenues.
The Series E funding round was co-led by Avra, DST Global, and Greycroft, with participation from prominent investors such as Andreessen Horowitz (a16z), CapitalG, BOND, Durable Capital Partners, and Y Combinator. To date, Whatnot has raised a total of approximately $746 million.
Furthermore, Whatnot disclosed that its annual gross merchandise value (GMV) for livestream sales has surpassed $3 billion, following a recent report of an annual GMV exceeding $2 billion. This impressive growth trajectory solidifies Whatnot’s position as a key player in the livestream shopping landscape.
