StockX valued at $3.8 billion after latest funding round
Detroit-based online resale platform StockX announced on Thursday that it has completed a new funding round, bringing the company’s total valuation up to $3.8 billion.
The funding round included a $195 million secondary tender offering and $60 million in Series E-1 primary shares. The all-cash offer was led by tech-focused investment fund Altimeter Capital and also saw the participation of previous StockX investors and newcomer Dragoneer Investment Group, which specializes in investments in disruptive businesses.
“This news signals the broad recognition and excitement for the long-term value of StockX’s business,” said StockX CEO Scott Cutler in a statement quoted by CNBC. “Fundamental shifts in both consumer buying and investing behavior provide an immense growth opportunity for StockX.”
The latest round of funding comes on the heels of an injection of $275 million in new capital in December of last year, which valued the platform at $2.8 billion. Thursday’s new valuation therefore represents a 35% increase in less than five months.
As for StockX’s plans for its new funds, the company also revealed to CNBC hat its “focus right now is on global expansion and category diversification, while continuing to grow our core business.”
Founded as a sneaker resale platform in 2015, StockX has since expanded into streetwear, handbags, watches, collectibles and electronics. The company has also grown into an international platform, boasting product certification facilities on every continent.
StockX has previously highlighted international expansion as a key priority and has defined achieving an equal balance between its domestic and international activities as a mid-term goal. As part of these efforts, having already launched native-language versions of its site in French, Italian, German, Chinese and Japanese, StockX is preparing to unveil localized experiences in three more European languages this year.
Both online resale platforms and sales of athleisure have experienced strong boosts during the Covid-19 pandemic, and StockX has been able to successfully capitalize on these shifts. According to the company, it generated more than $400 million in revenue in 2020, having closed over 7.5 million trades and hit $1.8 billion in annual gross merchandise value.
What’s more, on Wednesday, a Dow Jones report citing people familiar with the matter said that the company is expected to go public in the second half of 2021. The report has not yet been confirmed by the resale platform, but in light of the company’s recent successes, one thing seems certain: we’ll be hearing a lot more about StockX over the coming months.
Copyright © 2022 FashionNetwork.com All rights reserved.