Poshmark, the social media retailer company, has raised over $87.5 million in a Series D funding round led by Singapore-based wealth fund Temasek. This brings Poshmark’s overall fundraising to $160 million. Poshmark also has many investors in the wealth fund, including Menlo Ventures, GGV Capital, and Mayfield. In addition to financing, Poshmark is introducing a new product called Poshmark Stylist Match. Poshmark Stylist Match will be an in-app addition that will feature a voice activation for Amazon’s Alexa, allowing customers to be styled in real-time by Poshmark’s community.
Since 2011, Poshmark has paved the way for shopping that we can actually shop from another person’s personal closet. People reportedly spend 25 minutes on the platform, and stylist sellers share over seven million items daily. There are many other clothes selling apps, but Poshmark is different by being more of a social media platform than its competitors. The business model is also different than its competition. Last year, Threadflip shut down due to buying inventory. Poshmark does not buy any inventory, which helps keep the costs down low.
Poshmark is currently only accessible in the United States. However, Poshmark’s Chief Executive, Manish Chandra, states that it is widely popular with millennials, especially women who sell their clothing and accessories.
This introduction to Poshmark Stylist Match shows to be a positive move for the company. With Amazon’s Alexa, shoppers will be matched in real-time with real people who can cater to their styling needs.
Poshmark Stylist Match has a step-by-step to follow on how to be matched successfully. First, the shopper has to ask Alexa by saying, “Alexa, ask Poshmark to style me.” Next, the shopper will be prompted to give a theme to Alexa, such as Date Night or Cocktail Party. By doing this, it will help the Stylist Match give the shopper a successful match.
“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,” said Chandra. “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, and we’re thrilled to welcome Temasek as we further scale the company and continue disrupting the $2.4 trillion global fashion industry.”
With the company investing more into financing, Poshmark will be focusing on expanding their company to make it bigger and better to reach more of an audience.
Temasek is an investment company based in Singapore and is supported by 10 offices globally. Temasek owns $197 billion in its portfolio as of March 2017. This portfolio contains a variety of industries, including telecommunications, media and technology, financial services, transportation and industrials, consumer and real estate, life sciences, agriculture, and energy and resources. Temasek currently invests in various companies in the United States such as Airbnb, Ancestry.com, ClassPass, Dell Technologies, Global Healthcare Exchange, Intapp, Internet Brands, Jasper, Jet.com, SoundCloud, Univar, Verily Life Sciences, Virtu Financial, and Wish.
Poshmark making these innovations for their company is showing to be an excellent move for the company. The integration of chat-based technology is a genius move to make the app even more personable than before. The future of shopping seems to change every day, and we can’t wait to see what this will do for Poshmark.