Whatnot, a dynamic livestream shopping platform, has made waves by securing a staggering $265 million in a Series E funding round, elevating its valuation to an impressive $4.97 billion. This substantial investment underscores the promising future of livestream shopping in the U.S., an area where Whatnot has carved a niche by focusing on collectibles and specialty items.
With this new influx of capital, Whatnot plans to expand its categories further to include intriguing additions such as art, golf, and vinyl. In line with this expansion, the platform is rolling out innovative seller tools aimed at enhancing business growth for sellers by streamlining inventory and order management.
In an exciting move toward international growth, Whatnot is preparing to debut in Australia next month, with additional markets in Europe slated for later this year. Currently, its services are accessible in the U.S., U.K., Canada, France, Germany, Austria, The Netherlands, and Belgium.
Launched in 2019 by Grant LaFontaine and Logan Head, Whatnot has positioned itself uniquely as a marketplace tailored for collectors. Distinct from competitors that focus on fashion and beauty, Whatnot initially catered to fans of sports trading cards, action figures, comic books, and memorabilia. The platform has since broadened its horizons to include a diverse array of items like electronics, clothing, accessories, and even live plants.
A standout feature of Whatnot is its “sudden death” auctions that keep buyers on their toes as the last bidder wins. The platform has also introduced flash sales, adding an exciting twist with time-sensitive discounts, enhanced by a countdown clock to spur a sense of urgency.
In alliance with its funding news, Whatnot announced the launch of its first-ever tender offer, aiming to repurchase up to $72 million in shares. This initiative is a testament to its commitment to its 600 full-time employees, signaling robust performance and the ability to invest back into its workforce, creating value through salaries, benefits, or other investments.
The Series E round was co-led by Avra, DST Global, and Greycroft, bringing in major players like Andreessen Horowitz (a16z), CapitalG, BOND, Durable Capital Partners, and Y Combinator. Altogether, Whatnot has amassed approximately $746 million in funding to date.
In a testament to its market strength, Whatnot recently reported that its annual gross merchandise value (GMV) for livestream sales has skyrocketed, crossing the $3 billion mark, up from over $2 billion annually. This rapid growth illustrates the immense potential and thriving nature of the livestream shopping sector.
