Whatnot Raises $265 Million to Bring Live Shopping Mainstream

Live shopping marketplace Whatever plans to expand after raising $265 million.

The company’s Series E funding round, led by venture capital groups Greycroft, DST Global and Avrabringing Whatnot’s valuation to $4.97 billion, according to a Wednesday (Jan. 8) press release issued to PYMNTS.

What about co-founder and CEO Give LaFontaine said in the release that the capital will help Whatnot promote the mainstreaming of livestream selling.

“We believe there is a better way to shop online, and this starts with creating a platform where retailers can grow thriving businesses around the things they care about most,” LaFontaine said in release. “We’ve proven that this leads to the happiest experience for consumers and sellers. As we look forward, we’ll offer even more ways for sellers to grow their communities and for shoppers to shop and socialize.

Whatnot will use the financing to develop new dealer tools, expand into new markets – in terms of categories and geography – and invest in “trust and safety,” the release said.

Whatnot’s dealers are based in Austria, Belgium, Canada, Germany, France, the Netherlands, the United Kingdom and the United States, according to the release. The company plans to launch in Australia in February.

“What is pioneering a new, dynamic shopping experience – one that is more authentic, fun, social and effective,” Marcie Wufellow of Greycroft, wrote a portfolio spotlight on the Greycroft website. “Sellers are growing businesses around their passions, while millions of buyers come to the platform to connect with these sellers – exchange stories, learn about things, share real timely feedback, and interaction with like-minded enthusiasts.

The company hosts more than 175,000 livestream hours per week, and daily viewers engaged for an average of 80 minutes per day, per spotlight. There are over 140 categories, from collectibles to women’s fashion.

The number of new sellers and first-time buyers doubled last year, and the number of sales more than doubled, the press release said.

Whatnot’s funding round came as a rival TikTok faces a BAN in the US that can send its sellers to competitors. The US Supreme Court set to hear arguments to ban later this week.

Live shopping is gaining traction in the US and could account for over 5% of US eCommerce by 2026. Bellamy Grindlfounder of a retail consulting company Retaillyticstold PYMNTS this month that “brands must prioritize authenticity, compelling storytelling and human connection” for live shopping to thrive.