(Image Source: Curtsy)
Curtsy, a new clothing resale app specifically targeting Gen Z users, has successfully raised $11 million in Series A. The fundraising round included participation from Index Ventures, Y Combinator, and angel investor Josh Breinlinger.
Optimize listing process
Aiming to build a sustainable shopping habit for Gen Z consumers, Curtsy focused on how to gain more users for their app: “The big gap in the market is really for casual sellers — people who are not interested in selling professionally,” explains Curtsy CEO David Oates. “In pretty much every other app that you’ve heard about, pro sellers really crowd out everyday women. Part of that is the friction of the whole process,” he says.
A report by Wired showed that the number of casual sellers on Poshmark was insignificant due to process complexity. On Curtsy, with the combination of machine learning and human review, the listing process gets much smoother.
Another thing that Curtsy quickly noticed was their Gen Z and Millennial users did not own a printer for shipping label printing. To address this issue, they provided a free starter kit and label service which helped ease the label printing process.
Those add-ons and features so far seem to be working well. Curtsy currently has over a hundred thousand users who buy and sell on its iOS-only app with an average rate of three items bought or sold per month. By the end of 2020, the app had generated a $25 million GMV revenue run rate and witnessed average monthly growth of around 30%. Today, Curtsy takes a 20% commission on sales (or $3 for items under $15).
By getting more investment, Curtsy will expand the team to help it scale. The Android app is expected to launch in the first quarter of 2021. “We believe the incredible love for Curtsy is indicative of a large marketplace in the making,” shared Damir Becirovic of Index Ventures.