It’s a brand’s job to make their product seem appealing to consumers, and while advertising teams have their jobs for a reason, customers themselves can also have significant influence on others’ shopping decisions. Flip developed a mobile solution that proves this point, and its platform makes shopping as easy as scrolling through TikTok.
Combining the discovery aspect of social networking with the convenience of e-commerce, Flip’s solution allows shoppers to make purchases directly from another customer’s video product review. The company announced a $60 million Series B funding round led by WestCap that brings its total capital raised to $95 million. The platform aims to reinvent the shopping experience in the age of social media.
“Consumers’ shopping behaviors around the world have changed dramatically over the past 20 years while e-commerce platforms haven’t changed much since the late 1990s,” Noor Agha, Flip’s founder and CEO, told Built In via email. “We no longer discover products through images on a website, but through people within social networks. Flip was founded to drive the next era of e-commerce where product discovery begins.”
Flip created a digital community where consumers can upload 60-second video reviews of products they’ve purchased and used. These videos are outfitted with one-click checkout capability, and products arrive with same-day shipping. On Flip, hoppers can browse products through the same infinite scroll functionality as platforms like Instagram or TikTok. Shoppers can also create and monetize video reviews of their own.
The company’s new funding comes on the heels of significant growth. Since the start of the year, Flip has seen a 500 percent increase in its user base and a 600 percent increase in transactions on the platform.
Now, it’s furthering that momentum with the launch of its third-party social commerce marketplace that will extend access to Flip’s platform to independent brands. In addition to accessing Flip’s shopper community, these brands will also be equipped with e-commerce tools and insights into their performance, from sales data to content engagement. As of today, Flip’s initial partners operate within the beauty industry.
“The growth we’re seeing is a testament to the product and service we offer, and the trust our brand partners have placed in us, especially at a time when traditional e-commerce is facing challenges as we emerge from the pandemic,” Agha said. “We understand the difficulty of betting on a new trend in the early days, and are deeply appreciative of the long term view our brand partners have taken when deciding to partner with us and become early adopters of Flip.”
On top of launching its new marketplace solution, Flip is investing its new capital in growing its user base and deepening its brand partnerships. It’s also fueling hiring efforts to grow its 70-person team over the next 12 months, according to Agha.
