Poshmark Raises $12M Series B Led by Menlo Ventures
Poshmark, a mobile marketplace for fashion, announced the closing of $12M in Series B financing led by investment firm Menlo Ventures, bringing the company's funding to $15.5M to date. Existing investors Mayfield Fund, Inventus Capital, and SoftTech VC also participated in the round.
"Poshmark has created a one-of-a-kind, inclusive community where diverse women across America are coming together to connect around a shared love for fashion," said Manish Chandra, CEO & Founder of Poshmark. "With over 70% of our buyers also selling items, our new vibrant commerce model is set to make a mark on the $300B fashion market by empowering women to unlock the value of their closets."
Since its debut a year ago, Poshmark has leveraged heightened consumer confidence around selling clothing and accessories in order to buy new ones, its mobile-first strategy, and innovative real-time shopping events, to anchor its first-mover advantage. Key milestones include:
- Users add items from their closets to the marketplace at the rate of $100M a year, making Poshmark's virtual inventory more robust than most physical retailers in the U.S.
- Addicted users engage an average of 7 times a day for a total of 25 minutes daily, making Poshmark a top mobile app for most users.
- A social community with over two million monthly interactions between members as they shop, share and communicate with one another about their closets.
"Nothing in my closet is safe anymore. If I don't wear it, I'll sell it on Poshmark and use the money to buy something that I will really love," said Mackenzie Lachey, a 24-year-old cake business owner and Ohio resident who has bought and sold over 300 times in her first three months on the app. "I tag other Poshmarkers who share a common style with me on items I think they'd like. We're always looking out for each other. It makes buying and selling a lot more personal."
With the introduction of iPad, Android and web on the horizon for 2013, the company is directing the funds towards meeting user demand and expanding Poshmark's availability across all platforms while continuing to build upon the strength of the existing community. They plan to add top talent to the team and continue to connect with users online and offline with their unique Posh Parties.
"We couldn't be more excited to lead this investment round in Poshmark," said Pravin Vazirani, Menlo Ventures Managing Director. "We always look at the most disruptive players in each sector and with Poshmark's engaged community, infinite scaling possibilities, and innovative mobile-first approach, they are the clear winner."