Threadflip, the online consignment marketplace for women’s clothing, announced $13 million in Series B funding today. Norwest Venture Partners led the round, with participation from previous investors Baseline Ventures, First Round Capital and Shasta Ventures. This latest infusion now brings the total funding for Threadflip up to $21.1 million.
Threadflip will use the cash to hire at least 20 more merchandising and operations people to help deal with the demand of its popular white glove service offering known as the Concierge Full Service. To understand the significance of this initiative, that’s more than 40% of Threadflip’s current workforce of 36 full time and 12 part-time employees.
The Concierge Full Service is now Threadflip’s most popular service, according to a company statement. It allows women to order a “closet refresh package” from the company’s mobile app or website. Threadflip mails those who sign up for this offering a free, prepaid shipping bag to fill and send back with items for sale. Stylists then do all the work of sorting and taking professional photos and uploading the items to the marketplace within 24 hours.
Silicon Valley consignment startups Twice, ThredUp and The RealReal all have similar white glove services to Threadflip’s Consignment Full Service offering. According to Threadflip, this is its fastest growing and most popular service. Threadflip says over 78 percent of accessories and apparel are ultimately sold when listed using the Concierge Full Service. According to CEO Manik Singh this service has been growing more than 100 percent month-over-month since its launch earlier this year and there are over 1000 Concierge Full Service kits ordered per day on the site.
Singh also disclosed that the company has been talking about expanding to other verticals beyond just women’s clothing and that Threadflip is in the middle of some bigger partnership deals as well, but he wasn’t ready to disclose those deals just yet.