Poshmark, the app for fashion consignment, has raised another $87.5 million in funding led by Singapore-based Temasek. Menlo Ventures, GGV Capital, Mayfield and others also participated.
Having raised $160 million to date, the startup is well-capitalized and plans to use the money to build out its stylist-matching technology. Poshmark is launching voice integration with Amazon’s Alexa platform, that will allow users to describe what they want and then receive outfits tailored to their needs.
The company claims that one in 50 women in America use Poshmark to sell clothing and accessories. It’s also been growing its men’s and children’s categories.
Poshmark CEO Manish Chandra says it is slightly more popular with millennials, but has a “very broad reach.” He said that California is its most popular market in the U.S., but says Poshmark has been catching on across geographies. The company also has its eyes on international expansion, including Europe and Asia.
Poshmark takes a 20% commission off each item sold on its platforms. Earlier this year, we reported that the business is profitable and on track for $100 million in revenue.
There are a lot of fashion resale apps, but Poshmark’s looks more like a social media platform than a marketplace. Users are invited to browse friend’s collections and can see what others are buying.
Its business model is also different. Unlike Threadflip, which shut down last year, Poshmark doesn’t buy up any inventory. This helps keep costs down.
But it’s not the only business gaining traction. Competitor The RealReal has also built a full-fledged luxury consignment business. Others in the category include Rebag and ThredUp.
Poshmark has expanded beyond used items, with some designers selling new stuff on its platform. Today one in three items sold on Poshmark is actually brand new.
Poshmark hopes that its platform will increasingly mirror an in-store shopping experience, equipped with stylists and a large selection of items to choose from. Today Poshmark has 25 million items.
Last year, Poshmark hired a CFO and shared that it hopes to IPO someday.
Poshmark was founded in 2011 and is based in Redwood City, California.
Featured Image: Jen Kay