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Tag: Fundraising

Depop closes $62M funding round led by General Atlantic, passes 13M users

7th June 2019

We are very excited to announce Depop's latest funding round, led by General Atlantic, with participation from TempoCap.

Sector: Retail, Technology, Data, Media

Depop, the fashion marketplace for the next generation, has secured a $62 million Series C round led by General Atlantic. Depop intends to use the funds to accelerate its expansion in the U.S. and internationally, grow its London-based engineering and data science teams and invest in new tools and functionality for the platform’s more than 13 million users globally. Existing investors HV Holtzbrinck Ventures, Balderton Capital, Creandum, Octopus Ventures, and TempoCap also participated in the round, alongside angel investor Sebastian Siemiatkowski, Founder and CEO of Swedish fintech company Klarna. Depop was founded as a mobile marketplace for the creative community. It has since grown to amass a significant following among Generation Z, drawn to the app for its social connectivity and vast inventory  of original streetwear, independent brands, vintage designer, one-of-a-kind creations and more. (There are currently 16m items for sale on Depop, with 110,000 new items listed every day). Approximately 90% of Depop’s active users are under 26, and an estimated one third of 16 - 24 year olds in the UK are registered on the platform. The average daily user opens the app several times per day, discovering content and connecting with other users as well as buying and selling. Each month, Depop community members like, follow and message one another 85 million times. Depop has seen strong organic growth, particularly in the U.S., which the company projects will soon become its largest market. Since January 2018, Depop has grown its global user base to 13 million, almost doubled U.S. sales, and opened physical stores in New York’s Chinatown and the Silverlake area of Los Angeles. Depop is now among the top 20 most popular shopping apps in the U.S. by daily active users, and expects to grow its community of U.S. users to 15 million over the next 3 years. The vast majority of Depop’s new users in 2018 came to the app organically. This weekend, 8 - 9 June, members of Depop’s US community will convene in New York for Depop LIVE, a free and open to the public retail experience for buyers, sellers, stylists and creatives.
Depop CEO Maria Raga said: “The next generation of young people want an experience the fashion industry is struggling to provide. They want authenticity and to set their own trends. They’re influenced by real people. They want choice and individuality, the ability to buy on demand and sell on with ease. At the same time, they want to reduce waste. Depop is set up to meet these changing demands. We exist to empower the next generation to transform fashion.” “Social shopping, independent brands and resale are gaining popularity around the world, but particularly in the US where Generation Z will be the largest consumer group by 2020. Over the past 18 months, our growth in the US has been almost entirely organic, driven by the community of creative young people on Depop.” “This latest investment will enable us to scale further and faster in the US and beyond, building a platform that helps to find and grow the fashion stars and trends of the future.” Melis Kahya, General Atlantic Head of Consumer for EMEA, said: “Technology continues to transform the retail landscape around the world and we are incredibly excited to be investing in Depop as it looks to capture the huge opportunity ahead of it. In a short space of time the team has developed a truly differentiated platform and globally relevant offering for the next generation of fashion entrepreneurs and consumers. The organic growth generated in recent years is a testament to the impact they are having and we look forward to working with the team to further accelerate the business.” About Depop
Depop is the fashion marketplace for young people to buy, sell and get inspired. With more than 13 million registered users in 147 countries, its mission is to empower the next generation to transform fashion. Depop is headquartered in London, UK, with locations in New York and LA. For more information about Depop, visit Depop.com or download the app on iOS or Android. Follow Depop on Instagram @Depop. About TempoCap TempoCap is a leading pan-European technology investor in fast-growing sizeable businesses. TempoCap offers primary capital for companies to accelerate growth as well as attractive and flexible liquidity solutions for sellers (entrepreneurs, venture capitalists, corporates…). In addition to single asset investments, TempoCap advised funds acquire secondary direct investments by purchasing entire portfolios of investments from various type of investors including venture capital funds, corporates, banks or prominent business angels. We are specialists in structuring transactions that are tailored to the specific objectives of a seller.

TempoCap invests in RegTech company Onfido

28th September 2017

Sector: Technology, Data

LONDON — A "RegTech" — regulation technology — company founded by three Oxford grads all under 30 has raised $30 million (£22.4 million) from investors including Microsoft's venture capital arm. Onfido, an identity verification startup, has raised the "Series C" fundraising from Crane Venture Partners, Microsoft Ventures, TempoCap and Salesforce Ventures, as well as existing investors. It takes the total raised by the London startup to over $60 million. Onfido was founded in 2012 but only began proper operations around 2 years ago. It uses machine learning technology to help companies like Deliveroo, Zipcar, and Square verify the identity of customers and clients by checking that documents like passports and drivers licences are real. The company Onfido was set up by three Oxford graduates with an average age of 27. CEO and cofounder Husayn Kassai, 27, told Business Insider: "In many ways, it's somewhat surreal. We started out as a small startup, starting from zero five years ago having not done this before and just out of university. It's beyond anything we could have dreamed of."

From wild animals to passports

Kassai set up Onfido with Eamon Jubbawy, 25, and Ruhul Amin, 29. The idea for the company was originally based on Amin's university thesis. "Ruhul, his university thesis was using computer vision and machine learning to spot wildlife in a series of 25,000 photos of the jungle," Kassai says. That led to brainstorming about what else the technology could be used for. Onfido's document capture technology.Onfido's technology in action. Onfido "An important part of identity verification, a key component will be a document check. That is all about pattern recognition. Given that smartphones are used, documents can be held at an angle — all these kinds of things — that's where our applications are particularly strong," Kassai says. Onfido began trying to apply Amin's technology to document checking in 2012 but there was a lot of hard graft to get the company off the ground. "As with any technology, you need a lot of data to help it get stronger," Kassai explains. "It was almost three years ago that the data set that we had was significantly large to make our technology perform better than the human eye or other providers. What's happened since is that with everything single pattern check it gets stronger and better." Today, Onfido employs a team of 10 machine learning engineers, all with PhDs. "Machine learning" has become a buzzword in tech this year but Kassai is quick to add: "They're real practitioners." Onfido provides document checks for around 1,500 companies, most in the financial services sector, the sharing economy, or the gig economy. (The company, which is approved by the Home Office, ran identity checks for Uber drivers until Transport for London recently mandated that all private hire companies use the same identity checker.)

'It's a continuous learning curve'

Kassai and his cofounders may have a handle on the technology, how do they manage the job of running a fast-growing company at such a young age? Onfido's machine learning teamOnfido's machine learning team. Onfido "There are many cases, usually where it's our first time doing something," Kassai admits. "It's a continuous learning curve." But he adds: "An advantage of being young is we rely on each other as cofounders all the time and continuously consult and share ideas. And we are heavily reliant on advisors and senior team leaders and others who have done it before. We have to be resourceful and we have fortunately been able to do so." Sometimes their youth can also play to their advantage in hiring, he says. "When you're trying to recruit people and sitting across the table from some of the best people in the world, it helps if you're upfront with them and say, 'We can't hide the fact that we're young, however, if you join us you'd be valued and you'd be empowered to deliver, because we don't know how to do it any other way.' That, I think, turns it into an advantage."

Onfido targets Latin America

Onfido's latest $30 million funding injection follows a $25 million investment last April. Kassai says the latest funding will go towards technology investment and global expansion. "We are a team of about 150 and half the team, roughly, is on the technology side. We're solving a very complex problem so obviously, we need a lot of investment in that." He adds: "The other part of it will be investing in global expansion. Our core markets are the US, UK, and India. We're going to be investing even more in the US because it's our largest and fastest growing market. But equally Latin America. Particularly with fintechs, we're getting more and more clients [there] so we want to be putting more resources to expand on a global scale too." Kassai said he couldn't comment on Onfido's valuation in the latest fundraising.