What's This?Poshmark just raised $87 million.
Amazon is trying to take over online shopping, but the original e-commerce platforms aren't going down without a fight.
Poshmark, a clothing resale platform founded in 2011, just raised $87.5 million in a Series D round led by the Singapore investment company Temasek. The major influx of cash brings the company's total funding up to almost $160 million. Poshmark's funding comes just as Stitch Fix, one of the most successful shopping subscription services, is set to go public.
These startups are facing competition from Amazon after the tech giant introduced Prime Wardrobe, an option for customers to try on clothing at home and send back what they don't want. To compete, Fashion startups are doubling down on personalization and styling, which Prime Wardrobe doesn't offer. Poshmark is also a social platform, with sellers called "seller-stylists" who interact with customers.
Along with its funding round, Poshmark is revamping its styling features with none other than Amazon's Alexa. Users ask Alexa to style them, choose a theme like "date night" or "fall trends," and are matched with Poshmark's seller-stylists who deliver recommendations.
“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,” 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, and we’re thrilled to welcome Temasek as we further scale the company and continue disrupting the $2.4 trillion global fashion industry.”
Poshmark users spend 25 minutes a day on the platform and people selling clothing on Poshmark share 7 million items daily, the startup said. That—and the personal touch—is an advantage in the Amazon wars.