The rising popularity of omnichannel commerce is selling to customers wherever they are spending time online. The channel spawned an army of shopping tools and platforms that are giving legacy retail websites and marketplaces.
A London start-up named Depop has built an app for individuals to post and sell (mainly for resell) items to groups of followers by way of its own or third-party social feeds.
The funding will use in many areas. First, to build out the startup’s technology. Building more recommendation and image detection algorithms is another focusing area.
And second, it will expand in the US. The CEO Maria Raga stated that currently, Depop biggest market is only 5 million users and projections of that going to be15 million in the next three years.
Despite intense competition from a competitor like Vinted, Poshmark, and social platforms that have been doubling down on commerce, like Instagram and Pinterest, Depop will do absolute success.
Before this, Depop earned just under $40 million. It’s not disclosing its valuation accurately. “I’m delighted,” Raga said when I asked her about it this week.
The funding comes on the heels of stable growth and a strong focus for the start-up.
Payments come by the same way of PayPal, with no other alternatives at the moment. Depop’s 10% cut on every transaction is in addition to PayPal’s total payment. But the Klarna founder as a backer could cover the way for other payment methods.
The area Depop is trying to get more focused is on how its activities line up with state laws and regulations.
Raga said, “We are very close to our top sellers,” “We’re in contact, and we inform you of what they have to do. But if they don’t, it’s their responsibility.”