Whatnot, the platform that allows users to sell items such as trading cards, comics and sneakers via live video, announced Wednesday that it has secured $265 million in a Series E funding round, a significant investment for a livestream shopping platform. This round puts Whatnot’s valuation at $4.97 billion.
The investment marks a significant milestone for Whatnot and highlights the potential for growth in live streaming acquisitions in the US. The substantial amount raised reflects investors’ confidence that Whatnot can further innovate in the space, particularly in collectibles and specialty items, which is Whatnot’s focus area.
The new capital will be allocated to expand into more categories, including art, golf and vinyl. Whatnot is also working on new seller tools designed to help sellers grow their businesses. One of these tools aims to simplify inventory and order management for sellers.
Whatnot also plans to launch in Australia next month, as well as other markets in Europe later this year. It is currently available in the US, UK, Canada, France, Germany, Austria, Netherlands and Belgium.
Founded by Grant LaFontaine and Logan Head in 2019, Whatnot’s platform is designed for collectors today, distinguishing itself from competitors focused on fashion and beauty products. Initially focused on sports trading cards, action figures, comic books and memorabilia, it has expanded over time to include accessories, apparel, electronics, live plants and more.
A key feature of the platform is its “sudden death” auctions, where the last bidder wins the item. Recently, Whatnot introduced a new sales method called flash sales, which allows sellers to offer customizable, time-sensitive discounts on products. During live broadcasts, a countdown clock creates a sense of urgency among shoppers. Last year, the platform launched a new rewards tool that allows buyers to receive rewards from sellers after completing certain achievements and leveling up.
Alongside the funding announcement, Whatnot said it plans to launch its initial public offering to buy up to $72 million worth of shares. The company told us the move reflects its commitment to invest in its 600 full-time employees. Stock buybacks often suggest that a company is performing well and can afford to invest in its workforce, whether through salaries, benefits or other investments.
The round was led by Avra, DST Global and Greycroft, with participation from Andreessen Horowitz (a16z), CapitalG, BOND, Durable Capital Partners and Y Combinator. To date, Whatnot has raised approximately $746 million.
Whatnot also revealed that its annual gross merchandise value (GMV) for direct sales exceeded $3 billion after recently reporting an annual GMV of over $2 billion.
