The fashion resale social network Poshmark is announcing that it's raised $87.5 million in Series D funding.
The company also introduced a significant app update on Tuesday that lets sellers act as virtual stylists. It's called the Poshmark Stylist Match, and it gives sellers the ability recommend items in near-real time that are tailored to the style of buyers. In addition to the Poshmark app, users can also access Stylist Match via a voice-enabled skill for Amazon Alexa.
Poshmark -- which now has nearly three million registered sellers -- launched in 2011 as a digital consignment store and fashion marketplace with a mobile-first approach. Its goal early on was to a build a social network experience out of its web of buyers and sellers.
The startup exists alongside several venture-backed consignment sites like The Real Real and ThredUp, but Poshmark's business model differentiates a bit from the pack. Poshmark does not buy inventory from sellers, which lowers its costs, and instead makes money by taking a 20-percent cut from every sale. The company also has a wholesale portal that lets sellers become wholesalers on behalf of brands.
"Since day one, we've focused on building a highly engaged community, enabling our network of Seller Stylists to deliver a shopping experience that's personal, not just personalized," Poshmark CEO Manish Chandra said in a statement. "With the introduction of social styling, we're revolutionizing the way people shop by combining data, social interactions and people-powered commerce to create the fashion mall for the Instagram generation."
The company has raised over $160 million in the past six years from high-profile investors including GGV Capital, Menlo Ventures, Mayfield Fund and SV Angel. This latest round was led by the Singapore-based investment company Temasek.
With this latest round of financing, Poshmark plans to expand into new categories and invest in "building immersive, data-driven shopping experiences for its community."
PREVIOUS AND RELATED COVERAGE
Both department store chains are struggling to increase same-store sales, but e-commerce is showing gains.
The in-app feature, built using Apple's ARKit, lets users visualize items inside their homes before making a purchase.
Rent the Runway, a self-described "fashion company with a technology soul," wants to revolutionize how the average person shops for clothes -- using big data.