Naver Wraps Up Poshmark Acquisition

Naver, which said it was buying apparel resale site Poshmark for $1.2 billion in October, said Thursday that it has completed the deal.

Naver said the acquisition will “create a global player in online fashion re-commerce by combining Poshmark’s unique discovery-based social shopping platform and deeply engaged community with Naver’s technological prowess in up-leveling the e-commerce experience.”

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Due to the closing, shares of Poshmark ceased trading and were delisted from the Nasdaq. “As previously announced, Poshmark will continue to operate under its existing brand, as well as maintain its employee base, Poshmark community, and headquarters in Redwood City, California,” Naver said in a statement.

Naver, which was founded in 1999, is Korea’s oldest surviving start-up and today the country’s largest internet company. It described Poshmark as the “definitive brand for fashion in the United States,” which will accelerate Naver’s strategy to build a global e-commerce community portfolio “to capture growth in large untapped markets around the world.”

Naver said Poshmark will benefit from Naver’s leading technology, expertise in Asia, “and successful track record of backing e-commerce platforms globally.”

Naver said the deal is expected to “increase purchase conversion rates, deepen user engagement, create an industry leader in livestreaming commerce, and enhance the unique relationship and discovery-based experiences that are driving fast-growing re-commerce verticals.”

The move comes as companies such as Tmall and others accelerate the growth of livestreaming globally.

Sooyeon Choi, chief executive officer of Naver, said in a statement that the company is thrilled to close the deal “and welcome Poshmark to the Naver family, creating the strongest platform for powering communities and refashioning commerce.”

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

Manish Chandra, founder and CEO of Poshmark, said as part of Naver, the company will “benefit from their financial resources, significant technology capabilities and leading presence across Asia to expand our platform and enhance our user experience. I’m proud of what our team has built and look forward to seeing Poshmark employees benefit from being part of a larger, global organization that shares our values and vision around content, community and empowerment.”