Poshmark founder and chief executive officer Manish Chandra is now $25 million closer to his goal of having every woman using the social-commerce platform.
That’s the amount of funding the company just received, let by GGV Capital, with participation from all previous investors; this makes the total raised since its founding, in 2011, to be more than $70 million. With this investment, Poshmark also adds GGV managing partner Hans Tung to its board.
Chandra has big plans for Poshmark, which started as a mobile peer-to-peer clothing resale platform. He recently shared with WWD that Poshmark, in the coming year, will expand from women’s clothing and accessories into new categories, including children’s and men’s, and that it will begin to allow sellers to ship internationally; later, he said, Poshmark will develop local marketplaces in countries outside the U.S.
Although Tung has strong ties to China (past investments include Chinese smartphone-maker Xiaomi, Airbnb, Wish and RED), Chandra said that the international expansion will first focus on “countries that are nearer to us, like Canada, to build that know-how.” Still, he said, “China is a very strategic country and the second-largest market in terms of size and scale. With the new partner, there are many ways to partner with China.”
Chandra also shared that Poshmark’s recent expansion into retail (as opposed to users only buying and selling previously owned items from their closets on the mobile marketplace) has grown quickly, and that it plans to continue to add wholesalers, including more mainstream brands, to the platform.
Poshmark’s new “wholesale portal” connects wholesalers with Poshmark sellers, who can then sell the items at retail. They buy PoshPacks of merchandise, and style and price them as they would in an independent boutique. Poshmark takes a small commission of the wholesale items, in addition to the standard 20 percent it gets from the sales in its marketplace.
“The powerful thing of Poshmark,” he said, “is the social-selling network we have built. It doesn’t exist elsewhere.” Chandra said that the mobile marketplace re-creates the personalization and intimacy that used to be limited to independent boutiques. “If you look at e-commerce or a department store,” he said, “it’s about the product, and little about the connection.”
Chandra said that although it’s still early days, the growth of the Poshmark wholesale portal is “off the charts.” He shared that the wholesale portion of the business has grown five-fold in the last three months. So far, there are about 50 apparel and accessories brands. Poshmark’s core business, he said, tripled last year and is poised to double or triple this year. Current labels represented include Whitney Eve, Style Mafia, Vida, Three Bird Nest, Flash Tattoos and more.
Poshmark sellers who have expanded into retail, Chandra said, can help these brands expand their audience, and add a “conversation and transparency” that is often missing in retail. “We’ve re-created the social experience of shopping in the real world, online.”
Poshmark reported that its 1.5 million sellers are curating more than four million items daily, and that its millions of shoppers spend an estimated 25 minutes each day in the app and open it seven to eight times each day.
“Poshmark has set the standard for social commerce in the U.S.,” Tung said. “By building a platform that supports its community, the company has been able to foster a uniquely scalable shopping environment where sellers can build social influence to help drive discovery and sales.”
The Redwood City, Calif., company has less than 100 employees; its previous round of funding was also for $25 million, one year ago.