Clothing Reseller ThredUp Files For IPO

Online clothing retailer ThredUP has filed confidentially for an initial public offering (IPO) in the U.S., Bloomberg reports.

The company, based in Oakland, California, is one of the growing numbers of eCommerce sites trafficking in used goods, competing with old stalwarts like Salvation Army Thrift Stores. Despite concerns in the market about the COVID-19 pandemic affecting purchases of used clothes, ThredUp says it’s added customers this year, Bloomberg writes.

The digital resale market is poised to spike in growth by 27 percent this year with around $9 billion total by the end of the year. And Bloomberg says that by 2024, the market could continue to grow and quadruple in value.

Another used clothing retailer, Poshmark, also recently filed for IPO, after delaying that move for around a year to focus on growing sales and boosting its business.

ThredUP submitted its statement to the U.S. Securities and Exchanges Commission (SEC). The listing is targeted for next year, Bloomberg writes, and the company could raise between $200 million and $300 million. Goldman Sachs is an investor in the company and has advised it on its proposed listing.

The company raised $175 million in 2019, raking in investments from both new and existing contributors including Park West Asset Management and Irving Investors. The company’s value was $670 million after that, according to PitchBook stats.

The pandemic has been something of a wellspring for reCommerce, meaning second-hand sales. ThredUP is now worth $28 billion, with a projection of hitting $64 billion by 2025 as users look to keep to savvy, thrifty spending strategies during the economic crisis.

ThredUP Co-founder and CEO James Reinhart said he thought the interest in his company in spite of the pandemic came from people paying attention to the messaging around COVID-19. He said his company’s customers had realized the virus doesn’t transmit through apparel like it does through being in crowded spaces and other such dangers.