Whatnot Raises $265M at Nearly $5B Valuation - Livestream Shopping

Whatnot Secures $265 Million in Series E Funding

Whatnot, a platform facilitating live video sales of items like trading cards, comics, and sneakers, announced a $265 million Series E funding round on Wednesday.

This substantial investment signifies the growing potential of livestream shopping within the United States.

Valuation and Investment Highlights

The funding round has established Whatnot’s valuation at $4.97 billion.

Investors demonstrate confidence in Whatnot’s capacity for continued innovation, particularly within the collectibles and specialized item markets.

Expansion Plans and New Tools

The newly acquired capital will be used to broaden the platform’s offerings into new categories.

These include art, golf equipment, and vinyl records.

Whatnot is also developing enhanced seller tools to support business growth for its vendors.

A key focus is simplifying inventory and order management for sellers.

International Growth

The platform is scheduled to launch in Australia next month.

Further expansion into European markets is planned for later this year.

Currently, Whatnot operates in the U.S., U.K., Canada, France, Germany, Austria, The Netherlands, and Belgium.

Platform Overview and History

Founded in 2019 by Grant LaFontaine and Logan Head, Whatnot caters specifically to collectors.

This differentiates it from competitors primarily focused on fashion and beauty.

Initially concentrating on sports trading cards, action figures, and comic books, the platform has broadened its scope to include accessories, clothing, electronics, and live plants.

Innovative Selling Features

A distinctive feature is the “sudden death” auction format, where the final bidder secures the item.

Whatnot recently introduced flash sales, enabling sellers to offer limited-time discounts on products.

A countdown timer during livestreams generates a sense of urgency for potential buyers.

Last year saw the launch of a rewards program, allowing buyers to redeem points from sellers based on achievements.

Share Buyback Program

Alongside the funding announcement, Whatnot revealed plans for its first tender offer.

This offer involves buying back up to $72 million worth of shares.

The company states this action demonstrates its dedication to its 600 full-time employees.

Share buybacks often indicate strong company performance and the ability to invest in its workforce.

Investors and Total Funding

The funding round was co-led by Avra, DST Global, and Greycroft.

Participants included Andreessen Horowitz (a16z), CapitalG, BOND, Durable Capital Partners, and Y Combinator.

To date, Whatnot has raised approximately $746 million in total funding.

Gross Merchandise Value

Whatnot’s annual gross merchandise value (GMV) from livestream sales has exceeded $3 billion.

This follows a previously reported annual GMV of over $2 billion.