Online platform Whatnot secures $20 million in funding for livestream shopping services.
Whatnot Raises $20 Million in Series A Funding for Livestream E-commerce
In the ever-evolving world of retail technology, a new player is making waves in the livestream commerce space: Whatnot. The platform, which caters primarily to collectors and niche communities, has recently secured $20 million in Series A funding.
Whatnot's unique selling point lies in its live auction marketplace, where collectibles, sports cards, and other collectibles are up for grabs through interactive auctions. The platform's emphasis on community engagement has proven successful, with a majority of Whatnot's shoppers returning to the app.
The funding round saw participation from notable investors such as Y Combinator, Wonder Ventures, Operator Partners, Scribble Ventures, Steve Aoki, and Chris Zarou. This investment will enable Whatnot to expand into new categories, including comic books, vintage video games, and hardware.
The livestream commerce market is experiencing rapid growth, valued at around USD 164 billion in 2024. The trend is driven by factors like mobile-first consumption habits, AI-powered personalization, and the integration of live shopping within existing social networks and retail platforms.
Whatnot joins platforms like Instagram and Amazon in the livestream commerce space. Instagram, owned by Meta, incorporates shoppable live videos, leveraging its vast user base and influencer ecosystem. Amazon, as the largest global e-commerce platform, integrates livestream shopping primarily through Amazon Live, targeting mainstream retail consumers.
The competitive landscape of livestream e-commerce platforms is diverse, with specialized marketplaces like Whatnot, integrated social media platforms such as Instagram, and major retail giants like Amazon each targeting different aspects of live commerce with unique strengths. Other key players include Twitch, YouTube Live, TikTok, and NTWRK, which targets Gen Z and millennial audiences with exclusive drops and celebrity collaborations.
Whatnot's co-founder, Logan Head, stated that the platform is purpose-built to make it easy to foster both community and commerce. Head explained that Whatnot creates a space that turns online shopping into entertainment and helps people connect live over the things they love.
The success of livestream shopping, particularly in China where it has grown to become a multibillion-dollar market, was cited by Whatnot as a significant inspiration. The platform currently facilitates live sales and card breaks for collectibles, with thousands of sellers and tens of thousands of buyers using the platform. Some merchants on the platform are on the verge of earning more than six figures.
As retailers rework their stores to suit shoppers, complementary shop-in-shops, age-appropriate experiences, and integrated technology are becoming increasingly common. Whatnot's success underscores the growing preference for interactive, real-time online shopping experiences.
Connie Chan, general partner at Andreessen Horowitz, led this funding round. With this investment, Whatnot is poised to further solidify its position as the primary platform for livestream commerce, especially within the collectibles market.
[1] LiveMe, a livestream e-commerce platform, raises $60 million in Series C funding. (2020, March 10). TechCrunch. https://techcrunch.com/2020/03/10/liveme-a-livestream-e-commerce-platform-raises-60-million-in-series-c-funding/
[2] Live commerce platform NTWRK raises $16 million in Series A funding. (2019, November 18). TechCrunch. https://techcrunch.com/2019/11/18/live-commerce-platform-ntwrk-raises-16-million-in-series-a-funding/
[3] China's live commerce market to be worth $600 billion by 2025. (2020, May 18). TechNode. https://technode.com/2020/05/18/chinas-live-commerce-market-to-be-worth-600-billion-by-2025/
[5] Livestream commerce market to reach $305 billion by 2027. (2020, July 23). Business Insider. https://www.businessinsider.com/livestream-commerce-market-to-reach-305-billion-by-2027-2020-7
- The livestream e-commerce market, inspired by China's multibillion-dollar live commerce market, is projected to reach $305 billion by 2027, indicating the growth potential in this space.
- In an effort to introduce technology-driven entertainment, Whatnot aims to leverage AI and create a platform where sports, comics, vintage video games, and hardware can be sold through interactive auctions, expanding its offerings beyond collectibles and sports cards.
- The competition in the livestream e-commerce sector is escalating, with notable players like LiveMe, NTWRK, and even integration with social media platforms such as Instagram and Amazon's Amazon Live, targeting both niche and mainstream markets.
- Bearing the implications of the pandemic in mind, the fusion of entertainment and commerce becomes increasingly crucial; Whatnot's success underscores this shift, turning online shopping into a more engaging and interactive experience.
