From an idea born in Manish Chandra's garage to the world stage. Now, a platform with over 80 million users, over 200M available listings and a mission to put people at the heart of commerce, empowering everyone to thrive.
Founded by a group of five, boosted with findings and today worth over a billion dollars.
How did this company make it big? How are their users making money selling products, and what can you learn from their growth over the years?
All these and more answers await in this article.
Plus, find out how to launch your own million-dollar brand with our absolutely FREE playbook.
What is Poshmark?
Poshmark is a leading social marketplace for new and secondhand styles for women, men, kids, pets, homes, and more.
Who founded Poshmark?
Manish Chandra is the founder and CEO.
What's the origin story of Poshmark?
Poshmark was founded in 2011 by Chandra, Tracy Sun, Gautam Golwala, and Chetan Pungaliya in Manish’s garage.
In November 2017, the company announced that it had raised $87.5 million in Series D funding, at a valuation of nearly $600 million, in venture-backed funding led by Singapore-based Temasek.
Poshmark opened its first day of trading on the Nasdaq in January 2021, at a valuation of over $3 billion, listed on the Nasdaq Stock Market under the symbol POSH.
In the last quarter of 2021, the US second-hand fashion marketplace bought the sneaker authentication platform Suede One for an undisclosed sum.
Early this year, Korea's largest internet company announced the completion of its previously-announced acquisition of Poshmark, Inc.
How was Poshmark funded?
It was funded through venture capital investments and strategic partnerships.
Here's a list of their funding rounds:
- Series A funding: In February 2011, secured $3.5 million in a Series A funding round led by venture capital firm Mayfield Fund.
- Series B funding: December 2012, got $12M in Series B financing led by investment firm Menlo Ventures.
- Series C funding: April 2015, announced a $25 million Series C funding round led by GGV Capital.
- Series D funding: April 2016, they secured $25 million in a Series D funding round led by GGV Capital.
- Series E funding: November 2017, they secured a $87.5 million Series E funding round.
- Initial public offering: went public on January 14, 2021, offering 6.6 million shares at $42 each.
Poshmark has raised $153M in funding over seven rounds. Their latest funding was raised on Dec 29, 2020, from a Venture - Series Unknown round.
What is Poshmark's valuation?
When Poshmark was acquired, its enterprise value was an estimated t $1.2 billion, less than half its IPO valuation.
What lessons can entrepreneurs learn from Poshmark?
- Community is key: Poshmark has been very successful in fostering a strong sense of community among its users. The company hosts "Posh Parties," where users can list and share items within certain categories or themes. This not only increases user engagement but also reinforces the sense of community, which is important in creating a loyal customer base.
- Focus on user experience: Poshmark is easy to use and navigate, which makes it attractive to its users. The design of the platform, its features, and its algorithms are all designed with the user in mind. By prioritizing user experience, Poshmark has managed to create a platform that users love and return to regularly.
- Understand your market: The company identified a need in the market for a user-friendly, community-driven platform for selling second-hand clothes and accessories. By understanding the market and identifying this niche, Poshmark has been able to position itself successfully and differentiate itself from its competitors.
- Iterate and Improve: Poshmark started with a mobile-first strategy and iterated on its product offering based on user feedback and needs. This approach allowed them to continuously improve and stay ahead of competition.
FAQ
Which company acquired Poshmark?
Naver acquired Poshmark.
Manish Chandra had this to say after the acquisition: “The opportunity to join forces with Naver — one of the world’s leading and most innovative and successful internet companies – is a testament to the strength of our brand, operating model, and what we’ve built over the last decade with our talented team and amazing community.”
What products can I find on Poshmark?
Poshmark is a marketplace for women's, kids' and men's fashion and accessories, new personal care products, select home goods, select pet items, and electronics.
How do I become a seller on Poshmark?
You can become a seller using three steps: List it, share it, and earn cash. Visit here to sell.
How can I maximize my success as a Poshmark seller?
One of the biggest secrets to selling on Poshmark is to grab your buyer's attention with the product image and persuade them to buy with your description. We wrote a guide to making money on Poshmark that you can check out.
How is Poshmark different from other fashion marketplace companies?
Overall, Poshmark stands out by combining social networking with e-commerce, putting the user experience first, putting mobile first, giving a wide range of fashion items, focusing only on fashion, and providing protection and authentication services for sellers.
Takeaway
Once again, we see the role of problem-solving in business. One idea can turn your life around. What matters is that you find a need in society and meet the demand. For Poshmark, it was e-commerce — buying and selling.
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