App downloads are key metrics for all mobile-focused startups, but not many early-stage companies in the space can cite revenue-generating figures alongside their user growth. But Poshmark, the mobile marketplace that lets women swap and sell items out of their own closets, says that over the past year it’s enjoyed a strong showing at both levels.
In an interview this past week, Poshmark CEO Manish Chandra told TechCrunch that his company’s app, which is currently available only on iOS devices in the United States, now has 250,000 women with active personal “boutiques” to sell items out of their own closets.
Those numbers are impressive, but the real power is in the transactions occurring within that user base: More than 1 million items have been sold on Poshmark since January 1st of this year, Chandra says. That puts Poshmark as a company on track to see 10X revenue growth year-over-year in 2013.
Now, it’s important to note that the items on Poshmark run the gamut in terms of pricing — you’ll find anything from an $800 handbag to a $10 costume jewelry piece — so it’s hard to pin down exactly how much money the company is bringing in at the bottom line (Poshmark collects a 20 percent fee on all transactions.) And certainly Poshmark, which has raised $15.5 million in funding and has a staff of 50, likely still has a fair amount of growing to do in order for its business to become profitable — and to ultimately live up to the eBay-sized visions of Chandra and his investors. Meanwhile, competitors such as Tradesy, Threadflip, Vaunte, and others are also hustling hard to win the next generation clothing swap and consignment market.
But for now Poshmark seems to be on a good track, and Chandra seems to be up for the challenges ahead. “Fashion is a $350 billion industry in America,” he says. “We feel like we’re just in the first innings of women’s fashion. We’re very proud of where we are, but we want to 10X it again, and 10X it again.”