Social shopping platform Depop has raised $20m in a series B funding round, which it will invest in global expansion.
The funding round was led by Octopus Ventures with additional funding from TempoCap, which joins a list of existing investors including Balderton, HV Holtzbrinck Ventures, H-FARM, Creandum, Lumar as well as Italian entrepreneurs Luca Marzotto and Renzo Rosso from OTB/Diesel Group.
Depop was founded in Italy in 2012, but is now headquartered in London, and has more than 8m registered users. It provides a platform where young entrepreneurs can sell fashion items and it claims some make more than $10,000 monthly. Users can like, share and see what others are buying and selling, thus influencing and inspiring each other.
It was founded by former co-founder of PIG magazine and RETROSUPERFUTURE sunglasses, Simon Beckerman, who originally conceived it as a platform where readers could buy items they saw in the magazine, but was subsequently relaunched as a global mobile marketplace.
“By combining mobile shopping with social features, Depop is creating a stronger relationship between buyers and sellers. We are becoming a key part of the lifestyle of a generation which values community and sustainability, while possessing a strong entrepreneurial streak,” Beckerman said.
This latest cash injection makes it one of the best-funded European fashion start-ups of 2017, it claims, and it achieved $230m GMV (gross merchandise value) last year. In addition it achieved 130% revenue growth in the US and now plans to open a bricks and mortar shop in LA.
“The investment will support the global growth of the platform, particularly in the US, and scale the business. This will include the opening of bricks and mortar beta spaces, which will help us get even closer to our users and experiment with new formats. We are excited to work with Octopus Ventures. They have a strong portfolio and are experts in accelerating growth of lifestyle and marketplace companies,” said Depop CEO Maria Raga.
Rebecca Hunt of early stage VC investor Octopus Ventures will be joining the board following the deal. “We are excited to be supporting Depop on their next phase of growth as they continue to roll out across the US. The company has built a large, engaged and loyal user base amongst predominantly creative young people.
“Depop provides users with a selling and social platform and a global pool of buyers to leverage their unique community and inventory, generate their own brands and build revenue channels. This taps into a key trend in retail for millennials, and we are looking forward to seeing further growth of the business over the coming years, powered by an exceptional team,” Hunt said.