Naver Completes Acquisition of Poshmark and Aims to Grow Globally

Naver has completed its previously announced acquisition of Poshmark and aims to grow it globally.

The Korean internet company said in a Thursday (Jan. 5) press release that its purchase of the social shopping platform will create a global online fashion reCommerce player and accelerate its efforts to build a global eCommerce portfolio and reach markets that were previously untapped.

“I’m confident Naver’s leading technology in search, [artificial intelligence (AI)] recommendation and eCommerce tools will enhance the user experience for the Poshmark community and create additional value for all our stakeholders,” Naver CEO Sooyeon Choi said in the release. “Naver and Poshmark will immediately be well-positioned to compete globally in the future and benefit from [consumer-to-consumer (C2C)] as a major revenue source.”

Going forward, the new combination will focus on increasing purchase conversion rates, deepening user engagement, building livestreaming commerce and enhancing the reCommerce vertical’s experiences around relationships and discovery, according to the release.

As PYMNTS reported Oct. 4, Naver’s willingness to buy Poshmark energized the resale platform sector after months of declines that saw investors fleeing and valuations being crushed.

Although investors had been running scared, Naver and others saw value and growth opportunities in the resale space because economic factors are working in favor of platforms that allow consumers to both make money from selling stuff and save money by buying used items.

Similarly, eBay said later in October that it would turn its own situation around by catering to a rising demand for second-hand luxury goods and moving back to its own origins as a place for used items.

“We’re leaning into where Gen Z and millennials are,” eBay CEO Jamie Iannone said at the time. “There’s a bigger focus on sustainability and ‘reCommerce.’ eBay is really the pioneer … that gives us an opportunity.”

With the completion of the acquisition by Naver, Poshmark will retain its existing brand, employee base and California headquarters, as Naver said it would when announcing the planned acquisition Oct. 3.

“As part of Naver, we’ll benefit from their financial resources, significant technology capabilities and leading presence across Asia to expand our platform and enhance our user experience,” Poshmark Founder and CEO Manish Chandra said in Thursday’s press release.

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