Flip bags $28M to turn beauty, wellness social commerce on its head
Social commerce startup Flip is mixing live commerce mobile apps with real customer reviews to improve the buying experience and opportunity for the creator economy. Today, the Los Angeles-based company closed on a $28 million Series A led Streamlined Ventures.
Nooruldeen Noor" Agha, a serial e-commerce entrepreneur, founded Flip in 2019 after emigrating to the United States from Iraq. He had previously lived in Dubai, where he built some companies in the e-commerce space.
It was while leading the companies that he realized that the vision of commerce was broken and that people had a fragmented path to purchase: They may start on social media, then move to video platforms and conclude on yet another site to make the purchase.
Agha believes the future of e-commerce will be driven by shoppers and the experiences they have with social media, so Flip is pulling all of those experiences into one app, mixing in user-generated reviews and live shopping shows for beauty, wellness and health brands. It then adds same-day shipping and back-end logistics, Agha told TechCrunch. Users post video reviews of their purchases and can see in real-time data how they did, as well as receive commissions from sales that resulted from their posts.
It's not only a social platform, it is the best post-purchase experience - shipping, rewards, returns - everything people love and in a two-click process," he added. Our app is like if TikTok and Amazon had a baby."
Joining Streamlined Ventures in the latest round is Mubadala Capital Ventures, BDMI and a group of early backers and angel investors, including Ruby Lu, an early investor in Kuaishou, China's leading social commerce platform. In total, Flip raised $31.5 million, which includes a small seed two years ago, Agha said.
He intends to use the new funding to scale the company and its creator ecosystem, while also expanding the end-to-end logistics part of the platform.
Live commerce originated in China, where McKinsey estimates the market reached $171 billion in 2020 and will jump to a valuation of $423 billion by 2022. Meanwhile, U.S. live commerce market is trailing behind, expecting to reach $11 billion by the end of 2021.
Flip is now signing an average of 20 new brands per week and has already gained partnerships with Unilever and Coty. Agha expects to hit 500 brands by this year's holiday season. In addition, the company has 1 million downloads and in the last quarter shopped out 30,000 orders, which Agha predicts will double in coming months.
We were hiding on purpose so we could build out everything and be done when we launched," he added. We focused on onboarding brands instead of pushing for growth, but now we expect to have a grand launch at the end of September where we start aggressively pushing growth."
Ullas Naik, founder and general partner of Streamlined Ventures, said his firm does a lot of investment in e-commerce and marketplaces and was one of the first investors in DoorDash and also backed Rappi.
Commerce has evolved over the past 20 years in a meaningful way, he said. During that time, spend shifted from retail and online, while the quality of the experience has also evolved. He has seen evidence of similar models in other geographies, particularly in China when they have had massive success."
We are most intrigued with how live commerce intersects with social networking to create enhanced shopping experiences," Naik said. When I met with Noor and he told me he was going to start with beauty and cosmetics, I thought he was building a unique experience and wanted him to be in a broad range of categories, not just beauty. With what he is building on the back end, with the logistics piece, he is creating a super experience and I'm intrigued by what can be built."
Livestream e-commerce: Why companies and brands need to tune in