Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Sneaker retailer StockX’s valuation jumps to $ 3.8 billion

Sneaker retailer StockX’s valuation jumps to $ 3.8 billion

Scott Cutler, CEO, StockX

Scott Mlyn | CNBC

After a record year of revenue, StockX completed a new round of financing that values ​​the high-end sneaker retailer at $ 3.8 billion.

On Thursday, StockX announced the conclusion of a secondary offering of $ 195 million as well as an additional $ 60 million in Series E-1

primary shares.

“This news signals the broad recognition and excitement for the long-term value of StockX’s business,” said CEO Scott Cutler in a press release, “Fundamental changes in both consumer buying and investing behavior give StockX a huge growth opportunity.”

Altimeter Capital led the all-cash offering, which included former investors and new investor Dragoneer Investment Group. The company has also confirmed that some employees will sell shares. This announcement raises the StockX valuation by 35% from the $ 2.8 billion in December 2020.

“The company has quickly established itself as one of the most important online marketplaces for Gen Z and thousands of consumers,” said Jared Middleman, partner at Dragoneer, “This position has unlocked a number of promising new growth opportunities and we are pleased to support the StockX team as they work to realize this potential. ”

StockX is expected to be released in the second half of 2021, according to a Dow Jones report Wednesday, citing sources.

In response to this report, a StockX spokesman told CNBC: “Right now our focus is on global expansion and diversification of categories, while continuing to expand our core business. There are huge opportunities ahead and our mission right now is to perform.”

Source: StockX

Source: StockX

The company that once billed itself as the “Stock Market of Sneakers” has expanded its offerings to collectibles, handbags, electronics and more. But the core business remains the same, users can buy or sell goods in an open market, where StockX provides the platform, approval and niche content related to what it calls “the current culture”.

The Covid pandemic led to an increase in so-called leisure sales, and StockX benefited from the sudden shift in consumer spending and generated over $ 400 million in revenue in 2020, according to the company. StockX executives said it also closed more than 7.5 million trades, reaching $ 1.8 billion in gross commodities last year. StockX previously reported $ 2.5 billion in GMV from the launch of the company in February 2016 to June 2020.

The resale market is becoming more and more popular among shoppers of all ages, with sites like The Real Real being launched in 2019 and Poshmark debuting earlier this year. StockX competes with similar sites as Stadium Goods and GOAT, but is widely considered a leader.

“We’re just scratching the surface of what StockX can deliver to the millions of global buyers and sellers who rely on the platform for a wide range of authentic current cultural products,” Cutler said.

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