Livestream shopping platform Whatnot Inc. has raised $265m in a funding round led by Greycroft Partners and DST Global, bringing its valuation to $4.97bn.
Founded in 2019, Whatnot has positioned itself as an alternative to TikTok’s shopping features. In the past year, the platform facilitated over $3bn in sales, spanning items such as sneakers, collectibles, vinyl records, and handbags.
LA-based Whatnot operates with thousands of sellers across eight countries, including the US, Canada, France, and Germany. The platform hosts over 175,000 hours of livestreams each week, according to the company.
Live selling has gained popularity in the Asia-Pacific region, where TikTok’s parent company, ByteDance Ltd., is headquartered, by blending shopping with entertainment. TikTok Shop has since become a significant part of ByteDance’s US operations, with executives aiming to sell over $17bn worth of goods through the platform last year.
Whatnot’s funding round comes as TikTok faces a potential US ban, which could drive some of its live sellers to rival platforms. ByteDance is under a 19 January deadline to sell TikTok’s US operations, though intervention by incoming President Donald Trump remains a possibility.
Whatnot announced that new investors Greycroft, Avra, Lightspeed Venture Partners, and Durable Capital Partners joined the funding round. Returning investors Andreessen Horowitz, CapitalG, BOND, and Y Combinator also participated.
Source: Business of Fashion
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