SNKRDUNK, the sneaker reselling platform operated by Tokyo-based SODA, has secured $22 million in Series B funding. This investment round was spearheaded by SoftBank Ventures Asia, with participation from basepartners, Colopl Next, THE GUILD, and several other strategic investors. A portion of these funds will be allocated to facilitate expansion into additional Asian markets. Currently, the majority of SNKRDUNK’s sales occur within Japan, but the company intends to evolve into a marketplace that transcends national borders.

Combined with SODA’s $3 million Series A funding from the previous year, the startup’s total raised capital now amounts to $25 million.

Contrary to initial expectations that the COVID-19 pandemic would negatively impact the sneaker resale sector, consumer-to-consumer (C2C) marketplaces have experienced growth. StockX, a leading global sneaker resale platform valued at $2.8 billion following its recent Series E round, reported that May and June of 2020 represented its highest sales months to date.

SNKRDUNK also observed increased sales throughout last year, achieving a 3,000% year-over-year rise in monthly gross merchandise value in December 2020. According to Chief Executive Officer Yuta Uchiyama in a statement to TechCrunch, this growth was driven by sustained demand for sneakers coupled with a broader shift towards online shopping.

Established in 2018, SNKRDUNK currently serves 2.5 million monthly users, positioning it as Japan’s largest C2C sneaker marketplace. This Series B funding will accelerate its international expansion efforts, enable the addition of new product categories, and enhance its authentication capabilities.

Similar to platforms like StockX and GOAT, SNKRDUNK utilizes user fees to cover authentication processes prior to shipment to buyers. The company collaborates with FAKE BUSTERS, a Japan-based authentication service, to verify the authenticity of sneakers before they are delivered.

Beyond its marketplace functionality, SNKRDUNK also operates a dedicated sneaker news website and fosters an active online community.

SODA intends to collaborate with other companies within the SoftBank Venture Asia portfolio that specialize in artificial intelligence (AI) technologies. This collaboration aims to automate various operational aspects, including logistics, payment processing, customer support, and the detection of counterfeit products.