Reshaping the Resale Market: Kashew Hits $350,000 Milestone in 18 Months

Kashew

Since its debut in the Bay Area in early 2022, Kashew has made a remarkable entrance into the furniture resale market. Midway through its second year of operation, the company crossed the $350,000 milestone in cumulative transactions, thanks to the participation of numerous sellers who have collectively uploaded over $10 million dollars of merchandise on the platform.

This accomplishment is no small feat, especially considering the current state of venture capital and the diminishing effectiveness of user acquisition through ad spending. The two European founders have explained how unconventional approaches, often referred to as "growth hacking" and adopting strategies that don't scale, played a pivotal role in their early success in the San Francisco market.

What sets the company's metrics apart is the notably high average order value (AOV) and the impressive rate of repeat purchases on the platform. As stated by Per Obiora, Kashew's co-founder and CMO:

"When we launched Kashew in San Francisco, our target audience was initially students and individuals seeking affordable furniture. However, we quickly realized that the majority of our orders were coming from middle-aged, higher-income individuals residing in suburban areas, who were eager to revamp their living spaces with distinctive pieces. This unexpected shift towards a more affluent clientele greatly contributed to our rapid growth."

What's even more surprising is that Per and Francesco's assumptions about their customer base were not the only ones challenged. They also discovered that their most successful sellers were businesses rather than individuals. Francesco, the second company founder, explained:

"In the beginning, we primarily engaged with individuals in our area who were moving or renovating their homes to onboard new sellers. Yet, after conversing with some store owners, we realized that selling online was as crucial to them as it was to individuals. Upon partnering with the largest furniture warehouse in San Francisco and showcasing their catalog on Kashew, we recognized that catering to the needs of businesses was a more promising strategy. They were more receptive to adopting a new sales channel, had a larger inventory, and their listings and pictures were more detailed and professional."

Kashew: The Shopfiy For Used Furniture Stores

The impact on store owners has been remarkable. Since joining Kashew, furniture stores have witnessed an average increase of 20% in their online sales, with some power sellers generating over $50,000 in revenue during their first year of partnership, all achieved without marketing spend. Luis Perez, owner of the The Local Flea furniture warehouses in San Francisco and Phoenix stated:

“Kashew has been an incredible partner helping us connect with shoppers, becoming one of our top channels nationally already!”

Fundraising in the Tech Industry

Despite showing resilience and adaptability in the startup journey, there are some things that founders and entrepreneurs cannot control. Fundraising in the tech industry has become increasingly challenging in the past year. Company valuations have dipped and less venture capital is being deployed by investment funds, leading to more startups shutting down in the third quarter of 2023 than in the entirety of 2022, according to data from Carta. Kashew was among one of the many startups looking to fundraise last year, luckily Per and Francesco were able to take home just over $600,000 in investment from seed funds across the nation to continue their operations in the Bay Area and expand their reach beyond California.

As of today, Kashew is experiencing rapid growth. Their services now encompass nationwide insured shipping and furniture financing for customers while providing furniture store owners with the most comprehensive online sales platform. We eagerly anticipate the unfolding story of these scrappy, but determined and tenacious founders in the years to come.