Investors Drop $4.6M on Youth Fashion Platform TheDrop

view original post, a youth lifestyle marketplace platform, has raised $4.6 million through a Series A funding round, bringing the company’s total funding to $8.5 million.

The Las Vegas company announced the funding in a news release on Monday (Nov. 22), saying that it plans to use the money to “launch new content and brand ‘storytelling’ strategies, create real-time personalization across its user experience and bring its entire DTC ecosystem to new parts of the world.”

CEO Matt Falcinelli said is popular with millennials and Gen Z customers hoping to discover emerging designers while shipping for their favorite brands. “We solve the primary challenge of the $200 billion youth lifestyle market: ‘How do brands grow their direct-to-consumer (D2C) business while the consumer is still a multi-brand shopper, spending 80% of that $200 billion at multi-brand destinations?’”

He added that his platform gives merchants extended reach and D2C margins, while customers can enjoy a “curated multi-brand destination” that offers more than 70 new “drops” each day from more than 700 brands.

The company says a number of boutique retailers have given it credit for helping them stay open during the COVID-19 pandemic. “Through this experience, many of these one- and two-location retail shops have come to realize their own digital reach is not sufficient to succeed, and needs to be complemented with access to a curated, multi-brand digital sales channel,” the news release says.

Read more: D2C Apparel Retailers Tempt Investors With Forecast for 80K Fewer Physical Stores to Compete With

PYMNTS highlighted this paradigm shift in a story on the D2C apparel industry in October.

For example, when Rent the Runway filed with the Securities and Exchange Commission (SEC) for a public listing, it noted that as many as 80,000 retailers will close their doors in the next five years, meaning D2C will become an “essential channel.”

And the fast-fashion brand Lulus wrote in its S-1 filing with the SEC that even brands that want to shift to a more omnichannel model still find themselves locked in a drawn-out merchandising and buying cycle that forces brands and retailers to forecast trends and customer demands far into the future.



About: It’s almost go time for the holiday shopping season, and nearly 90% of U.S. consumers plan to make at least some of their purchases online — 13% more than did in 2020. The 2021 Holiday Shopping Outlook, PYMNTS surveyed more than 3,600 consumers to learn what is driving online sales this holiday season and the impact of product availability and personalized rewards on merchant preference.