Threadflip, an online marketplace where fashionistas can sell and buy clothing, just got a $6.5 million infusion from investors, the company announced today.
The company offers a quick and easy way for users to sell used items from their wardrobe and purchase other stylish hand-me-downs. It said it plans to use the funds to expand its services.
Threadflip, which started in 2011 after the cofounders' wives shared a pair of boots, is like eBay. Except way prettier.
Users upload photos, set prices and write descriptions. Once a transaction is made, the company will send a prepaid shipping box out to the seller and keeps 20 percent of the sale price.
Other fashion-centric online marketplaces either tend to be geared toward swapping clothes or don't facilitate transactions for a fee. Threadflip may be the more profitable way for investors to hone in on a growing industry. Although Threadflip wouldn't disclose how many users it has, the company says it has seen a 300 percent increase since it launched seven weeks ago, with 16 percent of users either buying or selling.
This round of funding was led by Shasta Ventures, with participation from Lowercase Capital and existing investors First Round Capital and Baseline Ventures. This brings Threadflip's total funding to $8.1 million. Investors have a vision for a "powerful global retail brand," Shasta Ventures's Tod Francis said in the release. Francis is now on Threadflip's board.
Threadflip also launched an iOS app, and over the next few months, will roll out "a slew of new, enhanced services," according to the company's press release.
This will include its fancy White Glove service -- sellers send Threadflip all of their used items in a prepaid box and the company takes care of the rest (in addition to keeping about 40 percent of the money made from sales). Threadflip has been providing this service for a select few, but plans for a wider rollout.
The company also plans to expand its workforce from 8 people to 20 by the end of this year.