ThredUp files for U.S. IPO
Digital-first fashion resale marketplace ThredUp revealed on Wednesday that it has filed confidentially for an initial public offering in the United States.
In a statement, the Oakland, California-based company announced that it has submitted a draft registration statement to the U.S. Securities and Exchange Commission. The IPO will begin once the SEC has completed its review process, with ThredUp currently hoping to be listed by early 2021.
Neither the number of shares nor the price range of the offering have been specified by the company. According to Bloomberg, ThredUp could raise between $200 million and $300 million with the IPO.
In a funding round closed in August of last year, the secondhand marketplace raised $175 million. Investors in the company include Goldman Sachs, Upfront Ventures, Trinity Ventures, Park West Asset Management and Irving Investors
ThredUp’s filing follows hot on the heels of that made by the company’s Redwood City, California-based rival, Poshmark, which filed confidentially for an IPO in late September.
Both companies have centered their operations in the increasingly lucrative resale market, which could be worth $64 billion within the next five years, according to Global Data statistics cited by a ThredUp report published earlier this year.
And despite throwing the retail sector into disarray, the Covid-19 pandemic does not seem to have had such a negative impact on resale platforms, with ThredUp claiming that it has maintained 20% growth since shelter-in-place orders were first implemented.
Since its foundation in 2009, ThredUp has signed off on partnerships with a number of big-name retailers, including J.C. Penney, Abercrombie & Fitch, Madewell and Walmart. For the most part, these collaborations were secured through the company’s “Resale-as-a-Service” model.
As of the end of May, all of ThredUp’s distribution centers are operational, but the company’s physical retail locations remain temporarily closed due to the ongoing health crisis.
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