Threadflip Raises $13 Million Series B to Double Down on Its On-Demand Closet Refresh Service
Concierge Full Service Posting Triple Digit Month-Over-Month Growth
SAN FRANCISCO, Calif., July 23, 2014-- Threadflip, the fashion marketplace for women to refresh their closets, today announced it received $13 million in Series B funding to double down on its rapidly growing Concierge Full Service business model.
Norwest Venture Partners (NVP) led Threadflip's Series B funding round with participation from earlier investors Baseline Ventures, First Round Capital and Shasta Ventures. With the Series B Threadflip has raised a total of $21.1 million since its seed funding in 2012.
"Today's consumer values convenience and trust, which puts us ahead of the game with our on-demand Concierge Full Service," said Threadflip CEO and founder Manik Singh. "We started Threadflip to eliminate the friction and expense of buying coveted brands. Now women are shopping with confidence because they know they can get back much of what they spend whenever they're ready for something new. Threadflip has quickly become the go-to app for women to refresh their closets seamlessly."
Using Threadflip's Concierge Full Service, women can order a closet refresh package in seconds from the company's mobile app or website. Threadflip then mails a free, prepaid shipping bag to fill and send back with items for sale. Threadflip professionally photographs and uploads the items to the marketplace within 24 hours. Once the items sell, women are given Threadflip credit that can be used to shop for other items within the marketplace or cash out.
More than 80 percent of women selling clothing on Threadflip use their proceeds to purchase other items available in the marketplace, and on average return at least once every two weeks to buy something new.
"I love Threadflip's Concierge Full Service -- it's super easy to use," said San Francisco resident Arian Hushyar. "I mailed Threadflip some of my Michael Kors shoes, some Ferragamo belts and a Theory jacket, and made my first sale just two days later. Since then I've bought a bunch on Threadflip and I've also convinced some of my friends to use the service. This totally takes the guilt out of buying since I know I can sell it on Threadflip."
Over 78 percent of accessories and apparel are ultimately sold when listed using Concierge Full Service, which has been growing more than 100 percent month-over-month since its launch earlier this year.
Threadflip also gives women the option to create and manage listings themselves, using photos they take and a simple sell form. With List It Yourself the seller prints a shipping label provided by Threadflip, mails the items to the buyer directly, and receives 80 percent of the purchase price.
For the next 60 days, Threadflip is reducing its commission to 20% and offering Concierge Full Service users 80 percent take-home, instead of the normal 60 percent, on all items over $75.
"Mobile platforms are reinventing the used clothing marketplace, providing a seamless platform for listing and selling clothes while also browsing and purchasing items," said NVP General Partner Josh Goldman, who is joining Threadflip's board of directors. "Threadflip has the necessary formula to break out from the pack. It has developed a well-curated, intuitive and seamless marketplace, and has tapped into the swelling fashion community by changing the social paradigm of buying used clothing."
Goldman is an investor in flash sales pioneer, Gilt Groupe, and a board member at Modcloth, the online shopping destination for all things vintage-inspired, and StellaService, provider of customer service performance ratings and analytics for online retailers. He was also on the board of RetailMeNot prior to the online coupon giant's public offering a year ago.
Added Shasta Ventures Managing Director Tod Francis: "We think Threadflip is a Sharing Economy visionary. They are fundamentally changing how women think about owning and buying clothes."
Threadflip is redefining fashion ownership forever. Using its trusted marketplace, Threadflip creates a virtual, revolving closet where women buy accessories and apparel they love, and recoup up to 80 percent of their items' price when they sell. By maximizing financial returns and eliminating resell hassles, Threadflip brings together like-minded women in a community where they can maintain and refresh a stylish wardrobe without spending a fortune. Threadflip is 2 years old, privately held, and based in San Francisco. Buy and sell your favorite brands at www.threadflip.com
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