Poshmark, the site for buying and selling women’s fashion, has announced that it has raised $25 million in a round led by GGV Capital. Hans Tung, managing partner at GGV Capital is joining the company’s board of directors.
Attracting 1.5 million sellers since its launch, Poshmark has found a niche in the clothing resale business, with an app that makes cleaning out your closet sociable. On the site, you can follow your friends, boutiques and brands for an Instagram-like feed centered around shopping.
“One in 50 women in America have opened up their closet on Poshmark,” founder and CEO Manish Chandra tells TechCrunch. Poshmark argues it has found a way to “implement social commerce in a way that’s never been done.”
In addition to its focus on used clothing, the company has now expanded to include new fashion items from popular brands. Merchandisers offer Poshmark’s most popular accounts the opportunity to purchase items at wholesale and use their clout to sell the clothes. Chandra says the company is looking to expand this business.
In the near future, Poshmark plans to introduce men’s and children’s fashions to its lineup. The team is also looking to introduce home furnishings and expanding beyond the U.S. to Canada, Europe and Australia.
Poshmark operates in a competitive landscape, which includes Thredup, Tradesy and The RealReal. Some of the thrift shop apps have found it difficult to stand out. While Threadflip recently shut down, Poshmark seems to be faring ok, though. The “business has been steadily marching toward profitability,” Chandra tells TechCrunch. Since Poshmark doesn’t own the inventory — unlike some of its competitors — it costs less to run the business.
Hans Tung told TechCrunch that he’s optimistic that the company will stand out from the herd, too. “Poshmark is definitely offering something different than what’s available,” adding that “to do fashion well with a lot of followers and curators and influencers is not easy.”
In total, Poshmark has now raised over $70 million in funding since its launch five years ago. Existing investors including Menlo Ventures, SoftTech VC, Mayfield and AngelList also participated in the current round.
“Shopping on Poshmark is kind of like going to the mall with your girlfriends, except you never have to leave your house,” said Pravin Vazirani, managing director at Menlo Ventures. “Since we’ve invested in the company, they’ve grown 40x.”