Flip has raised $60 million in a Series B funding round led by WestCap with participation from previous investors Mubadala Capital and Streamlined Ventures. This brings the company’s total capital raised to $95 million. The e-commerce platform combines a TikTok-like experience with shopping services.
El Segundo-based Flip plans to use the funding to expand the team, deepen its brand partnerships and launch its own third-party social commerce marketplace this summer. This funding round follows a period of rapid growth beginning in early 2022 during which Flip grew its user base by 500%, while also growing transactions on the platform by more than 600%.
Consumers use Flip to learn about products through videos that are shoppable with one-click checkout. They can then turn into creators by sharing their own video reviews and monetizing them as other users in the community engage and shop.
Flip also announced the launch of a third-party social commerce marketplace to extend access to the platform for independent brands, which will be able to access Flip’s social community of shoppers and creators, along with a full suite of proprietary e-commerce tools.
“Our thesis from day one was that the future of commerce is centered around people. No one sells a product better than the customer that has purchased that product multiple times, and we see that every day on Flip,” Noor Agha, the company’s founder and chief executive, said in a statement. Tina Yuan, vice president of investments at WestCap, will join Flip’s board of directors, and Brian Reinken, partner at WestCap, will serve as a board observer.
“Flip has thoughtfully stitched together complex technologies to redefine and elevate the way we discover products and shop online,” said Laurence Tosi, founder and managing partner at WestCap. “Their cutting-edge social commerce model is here to stay and ready to scale.”
Ibrahim Ajami, head of ventures at Mubadala Capital, said as investors they have not only been impressed by the product itself, but also by the speed of “execution and innovation.”