Scott Cutler, CEO of StockX
Scott Mlyn | CNBC
After a record year of sales, StockX has closed a new round of financing valued at $ 3.8 billion in the high-end sneaker reseller.
The company announced on Thursday that it had closed a second offering for $ 195 million and additional Series E-1 primary shares for $ 60 million.
“This news signals the widespread appreciation and enthusiasm for the long-term value of the StockX business,” said CEO Scott Cutler in a statement. “Fundamental changes in both the buying and investing behavior of consumers offer StockX an immense growth opportunity.”
Altimeter Capital led the cash offering, in which previous investors and the new investor Dragoneer Investment Group participated. The company has also confirmed that some employees will be selling shares. This announcement increases StockX’s valuation by 35% from $ 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 opened a number of promising new growth opportunities and we are excited to support the StockX team in realizing this potential.”
StockX is expected to go public in the second half of 2021, Dow Jones reported on Wednesday, citing sources.
In response to this report, a StockX spokesperson told CNBC, “Our focus right now is to expand globally and diversify categories as we continue to build our core businesses. There are tremendous opportunities ahead and our mission right now is to achieve them to implement. “
The company, once known as the “Exchange of Sneakers”, has expanded its offering to include collectibles, handbags, electronics and more. The core business, however, 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’s called the “current culture”.
The Covid pandemic spurred so-called sports sales, and StockX benefited from the abrupt shift in consumer spending, generating over $ 400 million in sales in 2020, according to the company. StockX executives said they closed more than 7.5 million deals in the past year and reached $ 1.8 billion in gross merchandise value. StockX previously reported $ 2.5 billion in GMV from the company’s inception in February 2016 through June 2020.
The resale market is becoming increasingly popular with buyers of all ages. Sites like The Real Real will go public in 2019 and Poshmark will debut earlier this year. StockX competes with similar sites like Stadium Goods and Goat but is widely recognized as the leader.
“We’re just scratching the surface of what StockX can deliver to the millions of global buyers and sellers who count on the platform for a wide range of authentic cutting-edge cultural products,” said Cutler.