This week has been a good one for the team at Poshmark – an app handling logistics for fashion items. They managed to raise $87.5 million in yet another fundraising.
This week has been a good one for the team at Poshmark – an app handling logistics for fashion items. They managed to raise $87.5 million in yet another fundraising. This one was led by Temasek – a Singapore based firm. Other big names in the industry like Menlo Ventures, Mayfield and GGV Capital were present too.
Up to date, they have raised $160 million. There are plans underway to build technology as superior as their brand. Of course, using these finances. In the near future, shoppers all over the world will be able to verbally describe outfits during their order. This will be powered by Amazon’s Alexa technology.
Word from the company is that, their platform is used by one in every 50 women who order clothing or fashion items through the internet. They have also been growing their children’s catalogue as well as that of men.
Manish Chandra, the company’s CEO, said that even though they have customers from both ends of the age spectrum; millennials are their biggest shoppers. Most of their shoppers come from California. This is no surprise since they have been based in Redwood City from their launch back in 2011. They are considering Europe and Asia in their expansion plans.
At an earlier period, this year, it was estimated that the company will exceed its target profit of $100 million; if they continue making their current profit margin. They make 20 cents for each dollar worth of items purchased through their platform.
While there are many similar applications in the marketplace, Poshamark discerns themselves from their competitors in that they are more of a social media and less of a fashion resale app. Users can ‘peek’ into their friend’s fashion shopping cart. But you need an invitation.
They do not stock on items: something that might have led to Threadflip’s downfall sometime last year. They will cut on costs this way and their ship will stay afloat – hopefully.
In addition to selling second hand items, designers can now sell brand new ones through them Actually, for every two shoppers buying a used item, a third one goes for the brand new one. With their 25 million items catalogue, there is something for everyone.