Popshop Live Raises $20M to Fuel Livestream Shopping

The Rise of Livestream Shopping and Popshop Live's New Funding

Traditional live shopping networks, such as HSN and QVC, initially introduced the concept to many consumers. However, livestream commerce experienced a significant resurgence during the pandemic.

Retailers and major e-commerce companies capitalized on a confluence of factors: the growing popularity of video entertainment, restrictions on in-person shopping, and increased online purchasing activity.

Popshop Live: A New Approach to Livestream Commerce

Popshop Live, a startup and accompanying app, is differentiating itself within this evolving landscape. It focuses on connecting shoppers with smaller, independent brands and individual sellers, alongside larger retailers.

The company has recently secured a Series A funding round of approximately $20 million, achieving a valuation of around $100 million.

Investment Details and Key Backers

Benchmark led the funding round, with participation from TQ Ventures, Mantis VC, Access Industries, and SV Angel.

Existing investors, including Floodgate, Abstract Ventures, and Long Journey Ventures, also contributed. Notably, the round included investments from prominent individuals like Sophia Amoruso, Baron Davis, Jim Lanzone, Kevin Mayer, Vivi Nevo, Michael Ovitz, Hailey Bieber, and Kendall Jenner.

Impressive Growth Metrics

Popshop Live is demonstrating strong performance, with sellers achieving gross merchandise value exceeding $500,000.

Customer retention is high, with 80% of shoppers returning within 30 days to make additional purchases.

The platform has experienced a 500% increase in the number of sellers over the past three months.

A Diverse Seller Base

Popshop Live hosts a variety of sellers, including 3D Retro, JapanLA, Earthing.VIP, Kettle & Fire, and even the Mall of America.

The platform also features unique and niche brands like “Giant Robot” and “EmoWeasel,” appealing to a diverse range of tastes.

Popshop Live and the Peer-to-Peer Shopping Trend

Founded by Danielle Li, known as Dan Dan, Popshop Live operates in a similar space as Depop, the London-based peer-to-peer shopping platform acquired by Etsy for $1.625 billion.

Like Depop, Popshop emphasizes interesting products sold by engaging personalities, fostering a social shopping experience through live chat and algorithmic feeds.

Potential for Integration with Major Social Platforms

The platform blends entertainment and commerce, leading to speculation that it could be integrated into larger apps like Snapchat or Instagram.

These platforms may consider building similar features or even acquiring Popshop Live outright.

A Shift in Live Shopping's Image

Traditionally, channels like HSN and QVC were often perceived as outdated. Popshop Live is attracting a younger demographic, including high-profile figures like Kendall Jenner.

This represents a significant shift in the perception of livestream shopping.

The Broader Livestream Commerce Landscape

The success of Popshop Live builds upon the foundations laid by platforms like YouTube and Twitch, where influencers and creators have long used livestreaming to promote products.

Amazon has also been actively developing its own livestream shopping capabilities through Amazon Live.

Furthermore, China's TikTok and WeChat have pioneered many of the features and trends now emerging in Western markets.

Staying Power and Future Growth

Popshop Live aims to establish itself as a sustainable force in the livestream commerce space, beyond the temporary boost from pandemic-related restrictions.

Benchmark’s Matt Cohler believes the company has created something “fundamentally new, unbounded and powerful,” praising founder Danielle Li’s vision and tenacity.

Expanding Reach to Traditional Retailers

Popshop Live is not only attracting independent sellers but also partnering with established retailers seeking to reach new audiences.

Jill Renslow, EVP of business development and marketing at Mall of America, highlighted Popshop Live as a “valuable alternative shopping platform” and plans to continue utilizing livestream shopping even as in-person retail recovers.

Team Expansion and Strategic Hires

The new funding will enable Popshop Live to triple its team, currently at 30 employees.

Key hires include Jason Droege, former founder and head of Uber Eats, to lead growth strategy, and Bangaly Kaba, previously at Instacart and Instagram, to oversee product development.

Droege described Popshop Live as a “totally new take on content and retail,” expressing excitement about scaling the platform.

Looking Ahead

“Bangaly and Jason are forces to be reckoned with and we’re thrilled to welcome them to our team,” added Li. “Their combined expertise, along with that of our new backers, will accelerate the expansion of our platform across geographies, verticals and product features.”