Payvment Gets $6 Million in Venture Funding

Startup Payvment has gotten $6 million in funding, a transaction led by Sierra Ventures and with participation by BlueRun Ventures.

The company that lets people set up free retail storefronts on Facebook is expanding. Startup Payvment has gotten $6 million in funding, a transaction led by Sierra Ventures and with participation by BlueRun Ventures.

Click on Payvment’s home page and you can see where the company plans to put the money: hiring. The site lists 11 job vacancies, seven of them engineering related and four in business roles.

That suggests additional functionality is coming to the service. The fact that none of the job postings refer to monetization may mean that Payvment already has a revenue model planned.

Media reports after the company’s last round of funding suggested that the company has no revenue model, but just because Payvment calls itself free to users doesn’t mean that an almsot microscopic percentage of every transaction value goes into the startup’s coffer.

Including the most recent transaction, the startup has garnered $8 million in funding. In May the company got $1.5 million from BlueRun Ventures and scored about $250,000 in seed money in 2009.

Payvment officially launched last November, and amassed around 40,000 sellers, both businesses and individuals. The startup’s Facebook page says the app has 548,542 active users per month.

This startup is many times greater in size than a competitor that scored some funding last week: With only 20,864 active users a month, Yardsellr just got about $5 million in funding led by Accel Partners. Harrison Metal Capital participated in the deal, and previously gave $750,0o0 in seed money toward the beginning of the year.

Facebook commerce is still nascent so it’s possible that any storefront enabler could become dominant in the space, whether that’s Payvment, Yardsellr or another outfit yet to emerge.

Readers, what has your experience been with buying or selling goods on Facebook? Does the social network have a greater potential for commerce than other websites?