Poshmark raises 25 million dollars in funding

Online fashion marketplace Poshmark has secured 25 million dollars in a Series C financing round, led by Mayfield, Menlo Ventures, Inventus Capital, Union Grove Venture Partners and others.

The new investment brings the company’s total financing to 47.2 million dollars and has doubled the startup’s venture backing. Amongst others, the company is backed by celebrity investors Rachel Zoe and Ashton Kutcher.

Founder and CEO Manish Chandra said in an interview that Poshmark will use the new funding to expand the company’s offerings to include children’s and men’s fashions. Chandra also plans to take the Menlo Park-based start up international, starting with Europe and Asia, within the year.

Poshmark began three years as a mobile app where women could sell pre-loved clothes and accessories directly from their closet. Since then, Chandra said, Poshmark has grown from a site to recycle used clothing into a full-fledged fashion marketplace and allowing some of its 700,000 users to earn a living through Poshmark.

“These women have been scaling their businesses,” Chandra said. One woman “started selling from her closet and now has become a full-blown fashion designer.”

In a recent interview, the company’s CEO advanced that Poshmark is on track to make 200 million dollars in revenue this year, doubling its sales-growth rate from December.

“They are disrupting the 350 billion dollars market of how women buy and sell fashion, similar to how Lyft is disrupting transportation,” said Navin Chaddha, managing director of Mayfield, reports ‘SiliconBeat’.