Scott Cutler, CEO, StockX
Scott Mlyn | CNBC
StockX completed a new round of funding after a record year of revenue that values the high-end sneaker reseller at $ 3.8 billion.
On Thursday, StockX announced the completion of a $ 195 million secondary offer, as well as an additional $ 60 million in primary series E-1 shares.
“This news indicates the widespread recognition and excitement for StockX’s long-term value,” said CEO Scott Cutler in a press release, “Fundamental shifts in both consumer buying and investing behavior offer immense growth opportunity for StockX. “
Altimeter Capital led the cash offer involving previous investors and the new investor the Dragoneer Investment Group. The company has also confirmed that some employees will sell stock. This announcement increases the StockX valuation by 35% from its $ 2.8 billion in December 2020.
“The company has quickly established itself as one of the premier online marketplaces for Gen Z and millennials,” said Jared Middleman, partner at Dragoneer, “This position has unlocked some promising new growth opportunities and we are excited to support the StockX team as they work to realize this potential. ”
StockX is expected to go public in the second half of 2021, according to a Dow Jones report Wednesday, citing sources.
Commenting on that report, a StockX spokesperson told CNBC, “Our focus is now on global expansion and category diversification, as we continue to expand our core business. There are huge opportunities ahead and our mission now is to execute. “
Source: StockX
Source: StockX
The company that once billed itself as the “Stock Market of Sneakers” has expanded its offering to include collectibles, handbags, electronics and more. But the core 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 the “current culture”.
The Covid pandemic sparked a surge in so-called athleisure sales, and StockX benefited from the abrupt shift in consumer spending, generating more than $ 400 million in revenue in 2020, according to the company. StockX executives said it has also closed more than 7.5 million transactions, reaching a gross trade value of $ 1.8 billion last year. StockX previously reported $ 2.5 billion worth of GMV from the company’s launch in February 2016 to June 2020.
The resale market is increasingly popular with shoppers of all ages, with sites like The Real Real going public in 2019 and Poshmark debuting earlier this year. StockX competes with similar sites such as Stadium Goods and GOAT, but is widely regarded as the leader.
“We’re just scratching the surface of what StockX can do for the millions of buyers and sellers worldwide who rely on the platform for a wide variety of authentic, up-to-date cultural products,” said Cutler.