British social shopping platform Depop announced on Tuesday that it has raised $20 million in Series B funding, making it one of the best-funded European fashion startups in 2017, according to a release from the brand. Depop plans to use the new funds to expand its operations in the United States, starting with two brick-and-mortar locations to be opened in NYC and Los Angeles.
"We are excited to be supporting Depop on their next phase of growth as they continue to roll out across the U.S.," said Rebecca Hunt of Octopus Ventures, the VC investor leading this round of Depop's funding via a press release from the company. "The company has built a large, engaged and loyal user base amongst predominantly creative young people... [It] taps into a key trend in retail for millennials, and we are looking forward to seeing further growth of the business over the coming years."
Founded in 2012, the social selling site now has more than 8 million registered users and saw 130 percent revenue growth in the U.S. in 2017 alone, according to the company. Depop's move toward opening brick-and-mortar locations mimics that of other online-first labels like Everlane and Warby Parker that built up successful virtual brands before establishing physical shopping spaces.
"By combining mobile shopping with social features, Depop is creating a stronger relationship between buyers and sellers," said founder Simon Beckerman. "We are becoming a key part of the lifestyle of a generation which values community and sustainability, while possessing a strong entrepreneurial streak."