Social commerce startup Flip is mixing dwell commerce cell apps with actual buyer opinions to enhance the shopping for expertise and alternative for the creator financial system. At this time, the Los Angeles-based firm closed on a $28 million Sequence A led Streamlined Ventures.
Nooruldeen “Noor” Agha, a serial e-commerce entrepreneur, based Flip in 2019 after emigrating to the USA from Iraq. He had beforehand lived in Dubai, the place he constructed some firms within the e-commerce area.
It was whereas main the businesses that he realized that the imaginative and prescient of commerce was damaged and that folks had a fragmented path to buy: They could begin on social media, then transfer to video platforms and conclude on one more website to make the acquisition.
Agha believes the way forward for e-commerce can be pushed by buyers and the experiences they’ve with social media, so Flip is pulling all of these experiences into one app, mixing in user-generated opinions and dwell buying reveals for magnificence, wellness and well being manufacturers. It then provides same-day delivery and back-end logistics, Agha informed ahosti. Customers publish video opinions of their purchases and may see in real-time knowledge how they did, in addition to obtain commissions from gross sales that resulted from their posts.
“It’s not solely a social platform, it’s the greatest post-purchase expertise — delivery, rewards, returns — all the pieces individuals love and in a two-click course of,” he added. “Our app is like if TikTok and Amazon had a child.”
Becoming a member of Streamlined Ventures within the newest spherical is Mubadala Capital Ventures, BDMI and a bunch of early backers and angel traders, together with Ruby Lu, an early investor in Kuaishou, China’s main social commerce platform. In complete, Flip raised $31.5 million, which features a small seed two years in the past, Agha mentioned.
He intends to make use of the brand new funding to scale the corporate and its creator ecosystem, whereas additionally increasing the end-to-end logistics a part of the platform.
Reside commerce originated in China, the place McKinsey estimates the market reached $171 billion in 2020 and can soar to a valuation of $423 billion by 2022. In the meantime, U.S. dwell commerce market is trailing behind, anticipating to succeed in $11 billion by the top of 2021.
Flip is now signing a median of 20 new manufacturers per week and has already gained partnerships with Unilever and Coty. Agha expects to hit 500 manufacturers by this yr’s vacation season. As well as, the corporate has 1 million downloads and within the final quarter shopped out 30,000 orders, which Agha predicts will double in coming months.
“We have been hiding on function so we may construct out all the pieces and be finished once we launched,” he added. “We targeted on onboarding manufacturers as an alternative of pushing for development, however now we anticipate to have a grand launch on the finish of September the place we begin aggressively pushing development.”
Ullas Naik, founder and basic associate of Streamlined Ventures, mentioned his agency does loads of funding in e-commerce and marketplaces and was one of many first traders in DoorDash and in addition backed Rappi.
Commerce has advanced over the previous 20 years in a significant means, he mentioned. Throughout that point, spend shifted from retail and on-line, whereas the standard of the expertise has additionally advanced. He has seen proof of comparable fashions in different geographies, notably in China after they have “had huge success.”
“We’re most intrigued with how dwell commerce intersects with social networking to create enhanced buying experiences,” Naik mentioned. “After I met with Noor and he informed me he was going to start out with magnificence and cosmetics, I believed he was constructing a novel expertise and needed him to be in a broad vary of classes, not simply magnificence. With what he’s constructing on the again finish, with the logistics piece, he’s creating a brilliant expertise and I’m intrigued by what could be constructed.”