For a growing number of online shoppers, buying doesn’t involve just clicking on links but also watching sellers pitch their wares live — a QVC for the TikTok era.
Now investors are betting that one of the biggest names in the industry, Whatnot, will continue to grow rapidly.
Whatnot has raised $225 million at an $11.5 billion valuation, the company plans to announce on Tuesday. The round comes less than a year after the e-commerce platform raised $265 million at half that valuation, and puts its total fund-raising at about $968 million.
The start-up will also disclose that it will let existing shareholders sell up to $126 million worth of stock.
Whatnot’s latest round suggests that many investors are sold on livestream shopping, which first became popular in 2016 in China. It is a format that essentially combines shopping with entertainment — some vendors put on highly produced shows. In the United States, livestream retailers had early success with collectibles. The appeal has since broadened significantly to other product categories.
The rise of Whatnot, which was founded in 2019 and is based in Los Angeles, mirrors the rapid growth of the industry. The company began with Funko figurines — its co-founder and chief executive, Grant LaFontaine, was the first live seller — but vendors on its platform now sell Pokémon cards, secondhand fashion, headphones and even plants.
The company typically collects about 8 percent of the sale price of items. But it isn’t yet profitable, Mr. LaFontaine said, as it concentrates on growth.
The company recently surpassed $6 billion worth of goods sold on its platform, doubling what it achieved at the end of 2024. It operates in nine countries, including the United States, Britain, France and Australia.
The company also emphasizes the community aspect of its business: On average, viewers now spend more than 80 minutes a day watching livestreams on the app.
“People have always wanted more of an experiential side to commerce,” Mr. LaFontaine said. “Commerce today is very transactional. Live and social shopping fills that gap.”
Mr. LaFontaine said Whatnot hadn’t been actively fund-raising when existing backers said they wanted to invest more in the company. The round was completed in a matter of weeks in late summer.
Two existing investors led the round: CapitalG, the growth-capital investment affiliate of Google, and DST Global. Other participants include two new investors, Sequoia Capital and Alkeon Capital, as well as Greycroft, Andreessen Horowitz, Avra and BOND.
“We have gained conviction with each round,” Laela Sturdy, a managing partner at CapitalG who sits on Whatnot’s board, said in an interview. Her firm has invested in all of the start-up’s fund-raising efforts since 2021.
But Whatnot must navigate several challenges. Other retailers have sought to gain footholds in livestream shopping, including other start-ups; established retail platforms like Amazon and Poshmark, some of which tap celebrities for sales; and TikTok, whose hugely popular TikTok Shop feature has a popular live option.
There is also the question of how much bigger livestream shopping will become. The sector is expected to hit $49 billion in sales this year, growing to $60.6 billion by 2028, according to data from eMarketer, a market research firm. But eMarketer’s forecast also shows the growth rate slowing, to as low as 5.3 percent by 2028. And the growth in China far outpaces that in the rest of the world.
Rachel Wolff, an analyst at eMarketer, said that livestream shopping was more deeply embedded culturally in China. While QVC and HSN have been operating in the United States for decades, she added, they remain a relatively niche market.
Mr. LaFontaine acknowledged that cultural differences gave China an advantage, but added that Western customers had shown increasing interest in livestream shopping. “How Asia does live commerce doesn’t really solve what we’re trying to do here,” he said.
And he has plans to keep growing Whatnot, including expanding to more markets by the end of 2026 — potentially including Asian countries like Japan.
Michael J. de la Merced has covered global business and finance news for The Times since 2006.
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