Twice, a marketplace for second-hand clothing, announced Thursday it has raised $18.5 million in a series B round led by Jeff Jordan of Andreessen Horowitz with participation from existing investors, bringing the total amount raised to $23 million. Jordan, former CEO of OpenTable and president of PayPal, will be joining the board. The company intends to use this financing to expand design, engineering, operations, and its executive team as well as to renovate a newly leased 25,000-square-foot warehouse in San Francisco.
Two-year-old Twice aspires to become the consignment shop of the Internet. Cofounder Noah Ready-Campbell said most brick-and-mortar consignment stores lack an online presence, and the clothing inspection process can be time consuming, not to mention uncomfortable. "A lot of people don't like the experience of having their closet be judged by someone standing across from them," he told Fast Company.
Instead, Twice users send in gently used clothes (shipping is provided) to its warehouses in San Francisco where members of its operations team review, measure, and photograph each item. Though Ready-Campbell says consignment stores are often disorganized and challenging to browse, Twice lets its customers filter garments by brand, size, color, and style. "If you're a buyer going into those stores, it's great if you're in the mood for a treasure hunt," he said. "It's not so awesome if you need to buy a blouse."
In November, the company released an iPad app, followed by an iPhone version a month later. Together, they are seeing "thousands of downloads a day," Ready-Campbell said, adding Twice had sold "hundreds of thousands of garments in 2013" while declining to provide specific figures. Fast Company reported in 2012 that Twice was bringing in $100,000 a month in revenue, but he said the amount "has grown a fair amount since then."