Popshop Live raises about $20 million with a valuation of $100 million for its livestream-based buying platform for hipsters.
Television networks that were once a part of the past such as HSN and QVC might have put live-streamed commercials on the radar for viewers; however, livestream commerce received an entirely new lease of vitality during the pandemic thanks to retailers and Leviathans of e-commerce experiencing an ideal storm that is the growing demand for entertainment via video as well as a trend (or even city rules in certain cases) for individuals to avoid physical stores and an explosion of e-commerce that is bringing greater purchasing of “shows” online.
Popshop Live, a new startup that has taken the concept with a different twist: a separate company that taps into the growing trend of shopping at smaller and more adventurous brands and people in the same way that big retailers do.It is making announcements of funding in the hopes of gaining lots of support from consumers, retailers, and the media industry all over the world.
The startup has completed Series A for approximately $20 million (the startup has not disclosed the exact amount, but an insider familiar with the sale confirmed the figure) with a valuation of approximately $100 million.
The round is managed by Benchmark and also includes participation by TQ Ventures (Andrew Marks, Schuster Tanger, and Scooter Braun’s firm), Mantis VC (The Chainsmokers’ VC vehicle), Access Industries, SV Angel, and the previous supporters Floodgate, Abstract Ventures, and Long Journey Ventures, who were part of the Popshop’s initial round of funding in July 2020. Individual investors in this most recent Series A round include Sophia Amoruso, Baron Davis, Jim Lanzone, Kevin Mayer, Vivi Nevo, Michael Ovitz, Hailey Bieber, and Kendall Jenner. It’s true… it appears that Popshop has been popped in recent months, at least for the most prominent investors.
However, wait… There’s even more! … as ads for late-night shopping are fond of claiming. The money is coming, following the company’s raking in amazing numbers as a result of its livestreaming model. The sellers who sell on Popshop Live are seeing gross merchandise values of $500,000 or more, with over 80 percent of buyers coming back within the first 30 days in order to purchase more.
PopShop does not reveal the number of sellers currently selling on its platform However, they say the number increased by 500% over the past three months. These include names such as 3D Retro, JapanLA, Earthing.VIP, Kettle & Fire and Mall of America, as along with others that you may not recognise but may love the names nonetheless They also include “Giant Robot” and “EmoWeasel.” (Now who would not be interested in purchasing an older Def Leppard t-shirt on Giant Robot?)
Popshop, founded in 2007 by Danielle Li, also known as Dan Dan (pictured, right), belongs to the same e-commerce category as Depop, a peer-to-peer online shopping platform that was recently purchased from Etsy for $1.625 billion.
Popshop’s philosophy (similar to Depop’s) is built around an assortment of fascinating merchandise, sold by equally fascinating people, and a bit of socialising thrown into the mix via chat streams that are part of the selling videos and, of course, the algorithmic stream that lets you view shows, after shows, and after shows as you go about your evening.
The results are somewhere between entertainment that diverts and a practical platform to purchase It’s a good compromise, and I’ll admit that you could imagine it functioning as an option on apps such as Snapchat as well as Instagram. (I’m thinking that these apps might also be looking to create something similar, should they not want to purchase PopShop for themselves.)
It’s an intriguing twist, given that we don’t think of channels like HSN or QVC as anything more than uncool, the domain of the middle-aged middle-class commoner, and not… Kendall Jenner.
However, the concept of streaming more live, dynamic sales targeted at a more youthful segment of the population has precedent in YouTube and its vast culture of influencers who use the platform to promote products and brands; and Twitch is following in the footsteps of YouTube with its livestreamed, sometimes sloppy but extremely enjoyable productions created by the actors who are in the shows. Naturally, Amazon has long been trying to tap into this (for years, we believe), with the most recent being by introducing a way to allow influential people to utilise their Amazon Live platform, which is its own streaming sales format known for selling products to customers.
There is China—the country that has extremely well-known applications TikTok and Wechat (whose features are frequently copied from their Western counterparts) have clearly emerged as the most recent pacesetters in terms of consumer and app preferences.
The idea behind PopShop is that it’s discovered an appropriate audience for this specific category among the younger generation of the West and is developing evidence of staying power that will go beyond the present “new normal,” as everyone would like to refer to it.
“Livestream commerce is not just a trend in China and during the pandemic; it is a multibillion-dollar phenomenon growing rapidly,” said Benchmark CEO Matt Cohler (who is a current board member of the company). “Dan Dan has come up with something that is completely unique and that is unbound and powerful. “Her dedication to creating a platform for culture is unique.”
To be clear, it’s not only about working with unusual retailers and people but also with traditional stores and settings, which used to be a welcoming place for younger customers but aren’t successful in doing so.
“Popshop Live was a valuable alternative shopping platform as traditional in-person retail halted during the pandemic,” said Jill Renslow, EVP of business and marketing for the Mall of America. “Even as the world continues to open up and we welcome shoppers back to the Mall of America, we plan to continue livestream shopping to reach new customers in a unique way.”
Popshop has announced the cash will in part be used to expand capacity of their team which is currently comprised of 30 employees. The company is also making new hires that are exciting. Jason Droege, who founded and served as the chief executive officer for Uber Eats, is joining to head growth strategy . Bangaly Kaba, who was previously at Instacart as the vice president of product as well as with Instagram in the role of head of growth. is now on board to help develop PopShop. PopShop product.
“There are few new products that seem magical the first time you use them,” Droege stated when he made an announcement. “PopShop is a totally new take on content and retail, and I’m excited to scale it to new sellers and new categories.”
“Bangaly and Jason are forces to be reckoned with and we’re thrilled to welcome them to our team,” Li added. Li. “Their combined expertise, along with that of our new backers, will accelerate the expansion of our platform across geographies, verticals, and product features.” I’ll get in touch with Li soon, and will add to this post more information details about her.