Scott Cutler, StockX CEO
Scott Mlyn | CNBC
StockXAfter a record year of revenue, it has completed a new financing round that estimates the high-end sneaker retailer at $ 3.8 billion.
On Thursday, StockX announced the conclusion of a $ 195 million secondary tender plus an additional $ 60 million in initial shares of Series E-1.
“This news signals the broad recognition and excitement of the long-term value of the StockX business,” said Chief Executive Scott Cutler in a press release. “Fundamental shifts in both consumer buying and investing behavior provide a tremendous growth opportunity for StockX.”
Altimeter Capital Led the entire cash offer involving former investors and new investor Dragoneer Investment Group. The company also confirmed that some employees will sell shares. This announcement raises StockX’s valuation by 35% from $ 2.8 billion in December of 2020.
“The company has rapidly established itself as one of the most important online markets for consumers of Generation Z and Millennium,” said Jared Middleman, Partner at Dragoneer, “This position has opened up a number of 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 The Dow Jones Report Wednesday, citing sources.
In response to the report, a StockX spokesperson told CNBC: “Our focus is now on global expansion and segment diversification, while continuing to grow our core business. There are huge opportunities ahead, and our job now is implementation.”
The company, which called itself the “Sports Shoe Stock Market”, expanded its offerings to include collectibles, handbags, electronics and more. But the core business remains the same. Users can buy or sell merchandise in an open marketplace, as StockX provides the platform, authentication, and specialist content related to what it calls “current culture”.
The Covid pandemic has driven so-called sports sales and StockX has benefited from the sudden 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 deals, bringing it to $ 1.8 billion in total merchandise value last year. StockX previously reported $ 2.5 billion in GMV from the company’s February 2016 to June 2020 launch.
The resale market is becoming increasingly popular with shoppers of all ages with sites like Real real Introduced to the public in 2019 and Bushmark It premiered earlier this year. StockX competes with similar sites like Stadium Goods and GOAT, but is widely recognized as a leader.
“We’re just scratching the surface of what StockX can offer to the millions of global buyers and sellers who rely on the platform for a wide range of authentic current cultural products,” Cutler said.