Scott Cutler, CEO of StockX
Scott Mlyn | CNBC
StockX, after a record year of revenue, completed a new round of financing that values the high-end sneaker distributor at $ 3.8 billion.
On Thursday, StockX announced the completion of a $ 195 million secondary bid and an additional $ 60 million in E-1 Series primary stock.
“This news points to the widespread recognition and excitement for the long-term value of the StockX business,” CEO Scott Cutler said in a press release, “The fundamental changes in both buying and selling behavior. Consumer investment provides an immense opportunity for growth for StockX. “
Altimeter Capital led the fully cash offering that included previous investors and new investor Dragoneer Investment Group. The company has also confirmed that some employees will sell shares. This announcement increases StockX’s valuation by 35% compared to $ 2.8 billion in December 2020.
“The company has quickly established itself as one of the largest online markets for Generation Z consumers and millennials,” said Jared Middleman, partner of Dragoneer, “This position has unlocked a number of promising new growth opportunities. and we are thrilled to support the StockX team as they work to achieve this potential. ”
StockX is expected to go public during the second half of 2021, according to a Dow Jones report on Wednesday, citing sources.
In response to this report, a StockX spokesman told CNBC: “Our focus now is global expansion and category diversification, as we continue to grow our core business. There are massive opportunities ahead and our mission is running now “.
Source: StockX
Source: StockX
The company that once presented itself as the “Slippers Stock Market” has expanded its offering to collectibles, handbags, electronics and more. But the main business remains the same, users can buy or sell goods in an open market, with StockX providing the platform, authentication and niche content related to what it calls “current culture”.
The Covid pandemic caused an increase in so-called leisure sales and StockX benefited from the sharp shift in consumer spending, which generated revenue of more than $ 400 million in 2020, according to the company. StockX executives said it also closed more than 7.5 million trades and reached $ 1.8 billion in gross commodity value last year. StockX previously reported $ 2.5 billion in GMV since the company’s launch in February 2016 through June 2020.
The resale market is becoming increasingly popular with shoppers of all ages, as sites like The Real Real will be made public in 2019 and Poshmark will be released earlier this year. StockX competes with similar venues such as Stadium Goods and GOAT, but is widely considered the leader.
“We’re scratching the surface of what StockX can offer to the millions of buyers and sellers worldwide who have the platform for a wide range of authentic current culture products,” Cutler said.