The live-shopping app Whatnot is currently in discussions to almost double its valuation to $20 billion.

      The startup, which offers a wide array of products including sneakers and sports cards through livestreaming, is seeking additional funding less than a year after a significant $11.5 billion round, as live commerce gains traction in Western markets.

      Whatnot, the livestream-shopping platform where presenters sell items like sneakers, trading cards, and vinyl records to a live audience, is negotiating to secure funding at a valuation of approximately $20 billion. This projected value would nearly double the company's worth, which was at $11.5 billion as recently as late 2024.

      The rapid increase in valuation is noteworthy. Achieving such a near-doubling in under a year places Whatnot among the fastest-growing consumer startups during a time when venture capital has predominantly flowed into artificial intelligence rather than retail applications.

      Whatnot operates live video auctions and sales across various categories, ranging from fashion to collectibles, taking a commission on each sale—turning the act of online shopping into an entertaining experience.

      The mechanics of the platform contribute significantly to its appeal. A host showcases an item, and buyers can bid or click to purchase in real-time, where the urgency of live transactions, countdowns, banter, and scarcity of items create an engagement that static product pages cannot achieve.

      The statistics are compelling. The company reports handling approximately $8 billion in livestream sales over the last year across North America and Europe, a volume that, according to its investors, justifies a valuation typically associated with software companies.

      Its list of investors reads like a prominent directory. Andreessen Horowitz, Sequoia, Lightspeed, and Google’s CapitalG have all supported Whatnot, representing the same investors that pursue significant rounds in technology, now betting on the potential of live commerce as more than just a trend.

      Although the concept isn’t new, it has recently started to succeed in the West. Livestream shopping has flourished in China for years, with platforms like Taobao transforming hosts into salespeople for millions of viewers, and investors in the West have long anticipated this format's transition.

      Whatnot is banking on the belief that this trend has finally taken hold. The company has expanded by embracing niche communities, focusing on collectors and resellers who view live auctions as both marketplaces and social hangouts, instead of trying to become an all-encompassing store.

      Moreover, it has begun acquiring capabilities. This month, Whatnot purchased Shaped, a startup specializing in real-time recommendation systems, aimed at directing viewers to streams and items that are most likely to lead to purchases.

      This acquisition hints at potential allocation of funds. A larger fundraising round would support the recommendation engine's development, expansion into Europe, and competition against social platforms that are also vying for the same audience.

      However, competition is intensifying. TikTok, Instagram, and Amazon have all entered the live and social shopping space, and Whatnot's independence is both an asset—as a platform dedicated to this niche—and a potential weakness against much larger competitors.

      Currently, the projected valuation remains a topic of discussion rather than a finalized agreement. Business Insider refers to it as a negotiation in progress, and valuations at this stage can fluctuate before being formalized, particularly in such a selective market.

      Nonetheless, the trend is significant. That investors would assign a $20 billion price tag to a shopping app, during a year when most substantial investments have favored AI, indicates that live commerce has advanced from being a mere experiment to becoming a legitimate category.

      It also emphasizes what it is not. In a funding environment focused heavily on AI technologies and infrastructure, Whatnot exemplifies that a consumer business with tangible transactions can still achieve a valuation akin to those of software companies, given the right growth metrics.

      The risk is similar to that faced by all marketplaces. Whatnot’s value relies on maintaining the loyalty of hosts and buyers on its platform, which can quickly wane if larger competitors offer more enticing terms or wider audiences.

      For the time being, the momentum is in favor of the company. A valuation near $20 billion would confirm that livestream shopping has arrived in the West, and for now, Whatnot is the name that investors are willing to support financially.