Whatnot sellers pass 1 billion orders as valuation reaches $11.5 billion

Whatnot sellers have processed more than 1 billion orders, Fortune reported, marking a major scale milestone for a livestream shopping marketplace that began with collectibles sales in 2020. The company’s growth also underscores investor appetite for consumer marketplaces beyond the artificial intelligence boom, after Whatnot raised $225 million in a Series F round in October at an $11.5 billion valuation.

The company told Fortune that more than 20 million new accounts were created on Whatnot over the past year. Whatnot also said the number of first-time buyers on the platform rose 285% year over year.

Cofounder Grant LaFontaine told Fortune that the order milestone has come quickly, saying most of the 1 billion orders occurred in the past six months. He also said Whatnot now handles a couple million orders on an average day, compared with roughly 30 orders on a big day in the company’s early period.

From Funko Pops to seafood

Fortune reported that Whatnot’s first orders were Funko Pops sold live by LaFontaine in July 2020. LaFontaine said that first livestream brought in $5,000 in sales over a few hours and cleared out the Funko Pop inventory the team had in its office.

Whatnot’s catalog has since spread across a broad set of categories. Fortune cited sellers offering Star Wars merchandise, designer handbags and fresh fish, including a San Diego-based seller who streams while fishing and ships seafood customers saw come from the Pacific Ocean.

The daily mix now includes Pokémon cards, crystals, sneakers, coins, plants and vintage toys, according to Fortune. Funko Pops, the company’s starting point, remain part of the marketplace.

A marketplace built around live selling

LaFontaine told Fortune that adding more categories has helped Whatnot attract more buyers and give sellers a larger audience. He described that as part of a marketplace effect in which stronger buying experiences can help draw more sellers and products.

Fortune noted that marketplace startups can be difficult to build because they depend on balancing supply and demand, keeping users active and managing transactions among large numbers of people. Whatnot’s model puts sellers on live video, which LaFontaine said adds accountability because shoppers can see both the seller and the item.

Unlike a traditional retailer, Whatnot does not hold all the goods being sold. Fortune reported that sellers handle shipping for their own products, while the company says it supports them by negotiating with carriers for shipping rates and bundling options.

LaFontaine and cofounder Logan Head started from a rented house, according to Fortune, with the living room filled with boxes when the team was still fulfilling its own inventory. Six years after that first collectibles stream, Whatnot says its sellers have crossed 1 billion orders on the platform.

This story draws on original reporting from Fortune.