Curtsy, a clothing resale platform and competitor to Poshmark, recently announced the completion of an $11 million Series A funding round to further its focus on the Gen Z demographic. The application, which originated from a previous dress rental service, now enables women to list and sell their clothing, shoes, and accessories, while streamlining many aspects of the conventional resale experience.

This latest investment was spearheaded by Index Ventures, with contributions from Y Combinator, existing investors FJ Labs and 1984 Ventures, and angel investor Josh Breinlinger, formerly of Jackson Square Ventures, who has since launched his own investment fund.

To this point, Curtsy has secured a total of $14.5 million in funding, encompassing several previous rounds that also included investors such as CRV, SV Angel, Kevin Durant, Priscilla Scala, and a number of other angel investors.

Similar to other online marketplaces for used clothing, Curtsy is designed to meet the demands of a younger consumer base increasingly seeking sustainable shopping options. Rather than continually purchasing new items, many Gen Z shoppers prefer to refresh their wardrobes over time, frequently utilizing resale applications to do so.

However, the process of listing clothing for sale on existing apps can often be quite demanding. A recent report from Wired, for instance, highlighted the challenges faced by many women attempting to profit from their wardrobes on Poshmark, often with limited success. Sellers expressed the need to go beyond simply listing, selling, packaging, and shipping items – they also had to actively engage with the community to gain visibility.

Curtsy takes a distinctly different approach. It aims to simplify and accelerate the listing process for occasional sellers by minimizing the effort required to complete a sale. Furthermore, the platform’s visibility isn’t dependent on a seller’s follower count, creating a more accessible environment for newcomers.

“The primary opportunity in the market lies with casual sellers – individuals who aren’t interested in professional reselling,” explains Curtsy CEO David Oates. “On most other platforms, professional sellers tend to dominate, overshadowing everyday women. This is largely due to the complexities of the selling process,” he adds.

The listing procedure on Curtsy is considerably more efficient.

The app employs a combination of machine learning and manual review to assist sellers in presenting their items effectively, thereby increasing their likelihood of a sale. When a seller initially lists an item, Curtsy suggests a price and automatically populates details such as the brand, category, subcategory, shipping weight, and recommended selling price, utilizing machine learning algorithms trained on past marketplace sales data. Human review ensures the accuracy of this information.

Prior to posting, Curtsy also enhances and crops images, addresses any listing issues, and moderates for spam. This standardization across all listings provides every seller with an equal opportunity for their items to be discovered and purchased.

Another distinguishing feature is Curtsy’s focus on its Gen Z and young Millennial user base (ages 15-30), who may lack access to essential shipping supplies or even a printer for generating shipping labels.

New sellers receive a complimentary starter kit containing Curtsy-branded packaging supplies, including poly mailers in various sizes. As they require additional supplies, the cost is seamlessly integrated into the selling process, deducted directly from their earnings. Curtsy also facilitates free USPS package pickups and can even provide sellers with shipping labels upon request.

“We quickly realized that many Gen Z users don’t have printers. Therefore, we offer a label service, providing labels by mail from centers nationwide, free of charge,” states Oates.

Furthermore, when a buyer resells an item purchased through Curtsy, they can do so with a single tap, eliminating the need to re-photograph and re-describe the item. This feature further streamlines the selling process.

The integration of technology, outsourced listing improvement teams, and supplementary features like supplies and labels can incur significant costs. However, Curtsy believes these investments ultimately lead to greater participation from casual sellers in the resale market.

“Any expenses we incur should contribute to increased liquidity, enabling us to grow more rapidly and attract a larger user base,” Oates says. “In the case of the label service, it allows individuals who would otherwise be unable to sell online to participate. No other app offers this level of accessibility without requiring a printer.”

The system has proven successful thus far. Curtsy currently boasts several hundred thousand active buyers and sellers on its iOS-exclusive app, with an average transaction rate of three items bought or sold per month. As of late 2020, the company reported a $25 million GMV revenue run rate and approximately 30% month-over-month growth. Today, Curtsy generates revenue by charging a 20% commission on sales (or $3 for items priced under $15).

The team, until recently, consisted of just five core members – including co-founders David Oates, William Ault, Clara Agnes Ault, and Eli Allen – supplemented by a contract workforce. The Series A funding will enable Curtsy to expand, particularly by investing in new roles within product and marketing to support its growth. The company also plans to develop an Android version of its app in the first quarter of 2021 and further enhance its web presence.

“We’ve rarely seen such a strong correlation between buyers and sellers on a consumer-to-consumer marketplace,” commented Damir Becirovic of Index Ventures, regarding the firm’s investment. “We believe the overwhelming enthusiasm for Curtsy signals the potential for a substantial marketplace,” he concluded.