Sustainable shopping is becoming more popular each year. These groups are more conscious of sustainability, so they’re likely to shop for used goods. ThredUp saw its net loss increase from $38 million in 2019 to $48 million in 2020. The online retailer specializes in selling gently used clothing. ThredUp is backed by Trinity Ventures, Redpoint Ventures, Highland Capital Partners, Park West Ventures, and Upfront Ventures, according to its filing with the Securities and Exchange Commission. The company had originally aimed to raise $100 million in its IPO.
Oakland-based ThredUp Inc., an online marketplace for secondhand clothing, raised $168 million in an initial public offering that was priced at the top of the range that was marketed. The company’s shares rose by nearly 30 percent during trading on the first day. On Thursday, Oakland-based ThredUp sold 12 million shares at $14 each, after initially marketing them between $12 and $14. With this sale, the company’s market value is now more than $1 billion, based on outstanding share listings.
The company noted that sustainable shopping is becoming more popular among millennials and generation Z consumers each year. These groups are more conscious of sustainability, so they’re likely to shop for used goods. ThredUp saw its net loss increase from $38 million in 2019 to $48 million in 2020. The online retailer specializes in selling gently used clothing.
ThredUp is backed by Trinity Ventures, Redpoint Ventures, Highland Capital Partners, Park West Ventures, and Upfront Ventures, according to its filing with the Securities and Exchange Commission.
Markets
ThredUp operates in the U.S., Europe, and Australia. It plans to use the proceeds from the IPO to expand internationally and invest in technology. The company has raised a total of $463 million from investors, including $175 million in a Series E round in 2019.
Business Model
ThredUp takes a commission on each item it sells. It also has a subscription service, which starts at $4.99 per month, that gives members discounts on shipping and access to exclusive sales. The company has more than 30 million members and 1,000 brands.
Competition
There are a number of other companies in the secondhand market, including Poshmark, The RealReal, and Mercari. ThredUp is the largest of these companies by revenue.
Financials
ThredUp generated $247 million in revenue in 2020, a 33 percent increase from the previous year. Its net loss was $48 million in 2020.
Related FAQs
What is the ThredUp IPO price?
The ThredUp IPO was priced at $14 per share.
What is ThredUp’s market value?
ThredUp has a market value of more than $1 billion.
Who are ThredUp’s investors?
ThredUp is backed by Trinity Ventures, Redpoint Ventures, Highland Capital Partners, Park West Ventures, and Upfront Ventures.
what is Oaklandbased 168m
Oakland-based 168m is an online marketplace for secondhand clothing. The company raised $168 million in an initial public offering that was priced at the top of the range that was marketed. With this sale, the company’s market value is now more than $1 billion.
