How Whatnot Grew From Selling Funko Pops to a $20 Billion Business

How do you turn a niche collectibles marketplace into a company valued at $20 billion?

On My First Million, Whatnot co-founder Grant LaFontaine explains how the company started small, experimented with unusual marketing tactics, and became a major live-shopping platform.

Starting With Just 30 Sales

Whatnot launched in 2019 selling collectible Funko Pops.

Its first month produced only around 30 sales. To attract buyers, the founders partnered with YouTube influencers and gave away valuable collectibles through referral competitions.

Rather than immediately targeting a massive market, they focused on serving one small community exceptionally well.

The Breakthrough: Live Shopping

In July 2020, Whatnot introduced live auctions.

Growth accelerated dramatically. According to LaFontaine, annual sales volume increased from approximately $2.3 million in 2020 to $163 million in 2021, before surpassing $1 billion the following year.

The platform expanded beyond collectibles into fashion, food, and other categories.

Business Lesson

Start with a niche, listen to customers, and expand once you've found something that works.

LaFontaine credits Whatnot's success to rapid experimentation, unconventional customer acquisition, and a willingness to change direction.

He also believes live shopping could become a much larger part of global e-commerce.

Watch the original video: https://www.youtube.com/watch?v=TAHAlGH_DK0