Livestream shopping platform Whatnot has secured a whopping $265 million in a Series E funding round, valuing the company at $4.97 billion. This significant investment marks a major milestone for the platform, which allows users to sell items such as trading cards, comics, and sneakers through live videos.

The funding round, co-led by Avra, DST Global, and Greycroft, with participation from notable investors like Andreessen Horowitz (a16z), CapitalG, BOND, Durable Capital Partners, and Y Combinator, demonstrates investors' confidence in Whatnot's potential to innovate and grow in the livestream shopping space. The platform's focus on collectibles and niche items has resonated with users, and the new capital will be allocated to expanding into more categories, including art, golf, and vinyl.

Whatnot is also working on new seller tools designed to assist sellers in growing their businesses. One of these tools aims to simplify the management of inventory and orders for sellers. Additionally, the platform plans to launch in Australia next month and other markets in Europe later this year, expanding its global presence beyond its current availability in the U.S., the U.K., Canada, France, Germany, Austria, The Netherlands, and Belgium.

Founded in 2019 by Grant LaFontaine and Logan Head, Whatnot's platform has evolved significantly since its inception, initially centered on sports trading cards, action figures, comic books, and memorabilia. Over time, it has expanded to include accessories, clothing, electronics, live plants, and more. A key feature of the platform is its "sudden death" auctions, where the last bidder wins the item. Recently, Whatnot introduced a new selling method called flash sales, which allows sellers to offer customizable, time-sensitive discounts on products.

Alongside the funding announcement, Whatnot revealed that its annual gross merchandise value (GMV) for livestream sales surpassed $3 billion, a significant increase from its previous annual GMV of over $2 billion. The company also announced its first-ever tender offer to buy back up to $72 million worth of shares, reflecting its commitment to investing in its 600 full-time employees. Share buybacks often suggest that a company is performing well and can afford to invest in its workforce, whether through salaries, benefits, or other investments.

The growth of Whatnot highlights the potential for livestream shopping to become a significant player in the e-commerce landscape. As the platform continues to innovate and expand, it will be interesting to see how it shapes the future of online shopping. With its focus on collectibles and niche items, Whatnot is well-positioned to capitalize on the growing demand for unique and rare products.

In conclusion, Whatnot's $265 million Series E funding round is a significant milestone for the company and the livestream shopping industry as a whole. With its plans for expansion, innovation, and investment in its workforce, Whatnot is poised for continued growth and success in the years to come.