Menlo Park-based Poshmark, a mobile app where you can buy and sell those once-loved fashions languishing in your closet, is, as they say, on fire. Just this week they announced a $12 million influx of investor funding, and in their first year in business they’ve gone from facilitating about 50 sales per week to 350,000 sales.
Perhaps the thing that piqued investors’ interest the most for this big round was that Poshmark seems to have that “sticky” quality that makes people keep coming back. Chandra says the average user opens the app for 25 minutes a day and opens it seven to eight times daily, and that 70 percent of people who buy something on Poshmark end up listing something for sale on the marketplace as well.
Fast-growing mobile fashion marketplace Poshmark Inc. has raised $12 million to fuel its next growth spurt and better battle a lengthy list of competing startups also seeking to upend the fashion industry.
Since launching last year, the app has grown quickly because women can quickly take a photo of a piece of clothing and upload it to sell on Poshmark, says founder and CEO Manish Chandra. Poshmark says its users are adding items at a rate of $100 million per year in value of the items. In terms of engagement, the app has seen users use the app seven times per day for a total of 25 minutes per day.
Poshmark started out as an iPhone app on Apple Inc.’s App Store, but a full desktop, iPad and Android apps are coming soon. Chandra got the idea for Poshmark after seeing shopping bags full of clothes his wife was not wearing in the closet. Poshmark was founded in 2011 and raised $3.5 million in venture funding led by the Mayfield Fund.