Depop, a UK-based peer-to-peer social shopping app, has raised $62 million in Series C funding. The most recent financing round was led by General Atlantic, with investments from Balderton Capital, Creandum, Octopus Ventures, TempoCap and Sebastian Siemiatkowski, founder and CEO of Klarna, the Swedish payments company.
Targeted at Millennials and members of Generation Z, the mobile fashion marketplace intends to use the funding to grow its London-based engineering and data teams and implement more recommendation and image detection algorithms, specifically to speed up the rate of removing counterfeit or illicit items. Additionally, Depop will allocate this funding to expand internationally, specifically in the U.S.
CEO Maria Raga said the U.S. is becoming the eight-year-old startup’s largest market, with five million current users and a projected 15 million in three years.
Despite the rise of peer-to-peer selling platforms like Poshmark and Vinted and social platforms like Instagram and Pinterest increasing their e-Commerce presence over the past few years, Depop has seen 100% year-over-year revenue growth and brought in gross merchandise value (GMV) of more than $500 million since its launch. Depop takes in 10% cut of the GMV sold, working out to total revenues being about $50 million for the period.
This financing announcement was made before Depop launched its first two-day retail experience in New York City, which was open to the public on June 8-9, with shops, panels, workshops and performances.