The shares of ThredUp Inc. they opened 30% above the listing price on Friday in their market debut, a first sign that investors continue to be bullish in online second-hand trading.
Shares of the Oakland, California-based retailer began trading at $ 18.25, after settling at $ 14, which was the high end of its previously announced range. At the listing price, ThredUp, which sold 12 million shares, raised $ 168 million at a valuation of about $ 1.3 billion.
ThredUp will use the revenue to expand the business, including adding new categories and making new investments in the company’s operating platform and technology, co-founder and CEO James Reinhart said Friday. The initial public offering is “another validation of the market opportunity and ThredUp plays the largest and thickest part of the market at our price,” he said.
ThredUp, which sells clothing for women and children, had revenue of $ 186 million last year, a 14% jump from the previous year, according to a document presented to the Securities and Exchange Commission. The company lost $ 48 million last year, compared to a loss of $ 38 million in 2019.
The company said it had 1.2 million active buyers at the end of last year, 24% more than the previous year. On average, these buyers visited ThredUp six times a month and placed 3.2 orders a year. The company defines active buyers as customers who have made at least one purchase in the last twelve months. “Customers continue to participate in our platform and continue to shop at higher prices,” Reinhart said. “I think it shows remarkable resistance.”