Startup News: OfferUp Says “Recommerce” Revolution is Here, Jackpocket Wins with Lottery Tech
November 8, 2022

Startup News: OfferUp Says “Recommerce” Revolution is Here, Jackpocket Wins with Lottery Tech

John Kimelman

Second-hand shopping is one of the hottest growing categories in retail. And this trend is benefiting several private companies who are taking a decidedly digital approach to the so-called “recommerce’’ market.

The reselling of items such as clothing, books, and furniture grew nearly 15% in 2021 from a year earlier — twice as fast as the broader retail market, according to a 2022 report by OfferUp, one of the leading private companies in the industry.

Not surprisingly, the desire to save money is the reason most people cited for thrifting, according to the Offerup survey. But a sizable minority of shoppers do it because they want to help the environment by reducing the amount of excess clothing and furniture that ends up in landfills. Others like to hunt for unusual clothes or vintage items they can’t find elsewhere.

Besides OfferUp, U.S. private companies on the forefront of the “recommerce” revolution are Chairish and furniture specialists Kaiyo and Fernish. OfferUp provides an online and mobile marketplace app that allows customers to buy and sell electronics, furniture, and cars while Chairish’s online marketplace focuses on pre-owned high-end home furniture, art, and decor. Kaiyo is an online marketplace for pre-owned furniture and claimed in an article in the New York Times last week that it has kept more than 3.5 million pounds of furniture out of landfills. Fernish has a different business model. A rental furniture subscription service, Fernish allows customers to pay month-to-month for items from brands like Crate & Barrel, always with the option to buy outright.

There’s little doubt that a period of high inflation combined with recessionary fears is providing a nice tailwind for second-hand items.

Lottery Tech Company Jackpocket is Winning

While second-hand shopping is growing in popularity in the U.S., so is playing the lottery. Sales of state lotteries in the U.S. reached $105.26 billion last year, a 17% increase over a year earlier. And one company benefiting from the nation’s lotto fever is Jackpocket, a private company that operates the leading mobile app that allows customers to buy lottery tickets fulfilled by licensed partners. Customers can now use the Jackpocket app in 13 states and the District of Columbia, and the company has plans to expand into other states. Nationwide, over $200 million in lottery prizes have been won on Jackpocket, and 20 individuals have won prizes worth $1 million or more to date, the company reports. Jackpocket has raised over $150 million just last year alone.

On November 1, the New York Post reported that the Jackpocket app was responsible for 15% of all ticket sales in New York state for Powerball since the mega lottery began its run starting in August. The Powerball jackpot has risen to close to $1.5 billion as of late last week, and Jackpocket is likely to benefit as more Americans seek to get in on the action with just a few smartphone keystrokes.

About the author: John Kimelman is a veteran journalist who has worked at Barron’s and CNBC covering such topics as investing and commercial banking.

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PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

The information and material presented in this article is provided for your informational purposes only and does not constitute an offer by Forge Global, Inc., Forge Securities LLC or any of its affiliates (collectively, "Forge") to sell, or a solicitation of an offer to buy any securities and may not be used or relied upon in connection with any offer or sale of securities. An offer or solicitation can be made only through the delivery of final offering document(s) and purchase agreement and will be subject to the terms and conditions and risks delivered in such documents.

This article does not constitute an offer to provide investment advice or service. Registered representatives of Forge Securities LLC do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services. Securities referenced in this article may be offered by Forge Securities LLC, member FINRA/SIPC.

Forge Securities LLC is a wholly owned subsidiary of Forge Global, Inc. Certain affiliates may act as principals in such transactions. Forge Data LLC is an affiliate of Forge Global, Inc. and Forge Securities LLC.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice. Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.