Whatnot, a platform that allows users to sell items such as trading cards, comics and sneakers through live video, announced Wednesday that it has secured $265 million in a Series E funding round. This is a significant investment for a livestream shopping platform. This round values Wattnot at $4.97 billion.
This investment is an important milestone for Watnot and highlights the potential for livestream shopping to grow in the US. It reflects investors' belief that they can innovate further in the item space.
The new capital will be used to expand into more categories, including art, golf and records. Whatnot is also working on new seller tools designed to help sellers grow their businesses. One of these tools is aimed at simplifying inventory and order management for sellers.
Whatnot is expected to launch in Australia next month, as well as other European markets later this year. 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 now designed for collectors and differentiates itself from competitors focused on fashion and beauty products. Initially focused on sports trading cards, action figures, comic books, and memorabilia, over time it has expanded to include accessories, clothing, electronics, live plants, and more.
A key feature of this platform is the “sudden death” auction, where the last bidder wins the item. Recently, Whatnot introduced a new sales method called flash sales. This allows sellers to offer customizable and time-limited discounts on products. During a live stream, a countdown clock creates a sense of urgency for buyers. Last year, the platform launched a new rewards tool that allows buyers to redeem rewards from sellers after completing certain achievements and leveling up.
In conjunction with the funding announcement, Watnot announced that it plans to launch its first-ever public tender offer to repurchase up to $72 million worth of stock. The company said the move reflects its commitment to invest in its 600 full-time employees. Stock buybacks often signal that a company is doing well and can afford to invest in its employees through pay, benefits, and 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 has surpassed $3 billion, after recently reporting that it exceeded $2 billion.