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| Mobile app development has become a major — and hugely profitable — part of the tech industry with the rise of mobile smartphones and tablets, but it’s unlikely that the developers behind Spring, a fairly new shopping app, ever predicted that they would generate $25 million in a Series B round of funding.
But according to reports from Business Insider, Forbes, and Fortune, this eight-month-old shopping app is predicted to become “the first big mobile shopping mall,” and its latest fundraising efforts make it clear that consumers and investors alike are ready for “mobile shopping malls.” Spring was launched in August 2014 by brothers David and Alan Tisch, who managed to nab approximately 750 different brands, including big names like Michael Kors and Hugo Boss, and compile these individual catalogs into one simple shopping app. The Tisch brothers managed to pull in $7.5 million Series A investments, and with a handful of high-fashion brands in tow, the app quickly — yet quietly — gained popularity among consumers and manufacturers. Although Spring “hasn’t exactly lit up the chart of most popular apps,” as Forbes describes it, the Tisch brothers haven’t lost a single brand from their app. Because it takes out a smaller cut (8% to 12%) compared to what retail stores typically take, manufacturers can offer items at lower prices, which appeals to consumers. When shoppers browse through the app’s catalog, which looks more like a Pinterest board than a shopping app, they can purchase items with a single swipe. Spring has generated just over $30 million in funding and is supported by a team of 45 employees in its NYC-based headquarters. App development is now a substantial portion of technology investments, and with 22% of businesses stating that they plan on making technology-focused investments in the near future, it’s not surprising that big corporations and small companies both contributed to Spring’s latest funding efforts. |
