StockX, after a record year of revenue, completed a new round of financing that values the high-end sneaker reseller at $3.8 billion.
The company announced Thursday the completion of a $195 million secondary offer, as well as an additional $60 million in Series E-1 primary stock.
“This news signals the widespread recognition and excitement for the long-term value of StockX’s business,” CEO Scott Cutler said in a statement. “Fundamental shifts in both consumer buying and investment behavior present StockX with tremendous growth opportunity.”
Altimeter Capital led the cash offer with previous investors and new investor Dragoneer Investment Group. The company has also confirmed that some employees will sell shares. This announcement boosts StockX’s valuation by 35% from its $2.8 billion in December.
“The company has quickly established itself as one of the premier online marketplaces for Gen Z and millennial consumers,” 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, Dow Jones reported Wednesday, citing sources.
Commenting on that report, a StockX spokesperson told CNBC: “Our focus now is on global expansion and category diversification as we continue to grow our core businesses. There are tremendous opportunities ahead and our mission now is to execute them. “
The company that once called itself the “stock market of sneakers” has expanded its offerings 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 associated with what it calls “current culture.”
The Covid pandemic led to a surge in so-called athleisure sales, and StockX took advantage of the abrupt shift in consumer spending, generating more than $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 trading value last year. StockX previously reported $2.5 billion to GMV from the company’s February 2016 launch to June 2020.
The resale market is becoming 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 like Stadium Goods and Goat, but is widely regarded as the leader.
“We are 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 variety of authentic current culture products,” said Cutler.