Hollar Raises $30 Million To Expand Into Higher-Priced Items

Hollar, the startup that enables consumers to find bargains via a mobile app, has reportedly raised $30 million in a round of venture funding, which the company plans to use to expand its business.

According to a report by TechCrunch, the Series B round of funding, which was led by Kleiner Perkins Caufield & Byers (KPCB) and included Comcast Ventures, Greycroft Partners, Lightspeed Venture Partners, Index Ventures, Forerunner Ventures and Pritzker Group, was accompanied by Eric Feng, a general partner at KPCB, joining the board. TechCrunch noted that, all told, Holler has raised $47.5 million in venture funding. Hollar sells items that are around $2. In the first 10 months of business, the app sold nothing that was over $5, but it is gearing up to expand into $10 items for the holidays. By doing that, it can sell better quality toys and gifts, noted the report.

“When we were launching this business, people said there’s no way you can make money selling a $2 item,” said Cofounder and CEO David Yeom in the report. But what critics didn’t get was that people who frequent dollar stores tend to load up their shopping carts rather than buying one item for $1. Yeom noted Hollar shoppers act the same way.

Expanding into higher-priced items may end up being a smart strategy for Hollar given a new study from American Express found consumers are planning on spending more this holiday season. Another bit of good news for Hollar from the American Express report: Consumers are increasingly using mobile to comparison shop, research and even make purchases — more so than last year.

Hollar was created by The Honest Company Chief Executive Brian Lee, who worked with Yeom on the concept. Lee serves on the Hollar board but is not involved in the day-to-day operations, noted the report.