what notThe platform, which lets users sell items like trading cards, comics and sneakers via live video, announced Wednesday that it has secured $265 million in a Series E funding round, a significant investment for a livestream shopping platform. This round valued Whatnot at $4.97 billion.
The investment marks an important milestone for Whatnot and highlights the growth potential of livestream purchases in the US. The substantial raised investor confidence reflects Whatnot's presence in the space, particularly in collectibles and specialty items, which are Whatnot's focus areas.
The new capital will be allocated to expand into more categories including art, golf and vinyl. Whatnot is also working on new seller tools designed to help sellers grow their business. One of these tools aims to simplify the management of inventory and orders for sellers.
WhatNote also plans to launch in Australia next month, with other European markets later this year. It is currently available in the US, UK, Canada, France, Germany, Austria, Netherlands and Belgium.
Founded in 2019 by Grant LaFontaine and Logan Head, Whatnot's platform is designed for collectors today, differentiating itself from competitors focused on fashion and beauty products. Initially focused on sports trading cards, action figures, comic books and memorabilia, it has expanded over time to include accessories, apparel, electronics, live plants and more.
A key feature of the platform is its “sudden death” auction, where the last bidder wins the item. Recently, Whatnot introduced a new sales method called flash sales, which allows sellers to offer customizable, time-sensitive discounts on products. During the live stream, a countdown clock creates a sense of urgency among shoppers. 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 funding announcement, Whatnot said it plans to launch its initial tender offer to buy $72 million worth of shares. The company told us the move reflects its commitment to invest in its 600 full-time employees. Share buybacks often suggest that a company is performing well and can invest in its workforce, whether through salaries, benefits or other investments.
The round was co-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 approximately $746 million.
Whatnot also revealed that its annual gross merchandise value (GMV) for livestream sales recently surpassed $3 billion. Reporting Annual GMV of $2 billion.