TikTok Shop rival Whatnot raises US$265M in funds with plans of expansion

US: Livestream shopping platform Whatnot has raised US$265 million (about S$363 million) at a valuation of US$4.97 billion in a funding round led by Greycroft Partners, DST Global, and Avra, as reported by Bloomberg.

Founded in 2019, the startup has become a rival to TikTok’s shopping features. In 2024, Whatnot sold over US$3 billion in collectibles, handbags, sneakers, and vinyl records, among other items.

Grant LaFontaine, co-founder and CEO of Whatnot, believes that live and social commerce will transform retail. “The opportunity for what live and social commerce can do for sellers and sellers’ businesses is pretty tremendous,” he said.

Whatnot, based in Los Angeles, operates in eight countries, including the US, Canada, France, and Germany, and broadcasts over 175,000 hours of livestreams each week.

Sellers, such as Val Zapata from Shoe Game Co., described the platform as “Instagram meets eBay”. She was able to sell over US$6 million worth of sneakers through Whatnot last year.

Livestream shopping has already done well in parts of Asia-Pacific, where TikTok Shop has become a major player. In the US, TikTok Shop aimed to sell over US$17 billion in goods last year.

However, TikTok’s future in the US is uncertain due to potential government action. ByteDance, TikTok’s parent company, has a deadline of Jan 19 to sell TikTok in the US, although President-elect Donald Trump could intervene.

Mr LaFontaine said that Whatnot “will happily help” TikTok sellers “regroup and build a really great live and social business”.

Whatnot plans to use its new funding to expand. The company intends to hire more engineers, improve customer service, and launch new categories like golf and art. It also plans to enter new markets, including Australia.

Whatnot plans to buy back up to US$72 million of its shares. Since its launch, the company has raised US$746 million from investors.

New investors Greycroft and Avra, along with Lightspeed Venture Partners and Durable Capital Partners, joined returning investors Andreessen Horowitz, CapitalG, BOND, and Y Combinator. /TISG