Poshmark Inc. is preparing to go public.
The online resale business announced late last week that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission. The filing includes the proposed initial public offering of its Class A common stock.
According to a press release, the number of shares to be sold, as well as the price range for the proposed offering, have yet to be determined. The IPO is expected to begin after the SEC completes its review process, which is subject to market and other conditions.
Poshmark was founded by CEO Manish Chandra nearly a decade ago. As a self-described “social commerce marketplace,” the Redwood City, Calif.-based company provides sellers and buyers a platform for new or used apparel, accessories and other lifestyle merchandise. Last year, Chandra shared that the company had so far secured $160 million in funding, hit the elusive unicorn status with a reported $1.25 billion valuation and counted 50 million registered users among its selling-buying base.
The recent announcement comes a month after rival ThredUp Inc. was said to be pursuing its own IPO. According to an August report by Bloomberg, which cited people with knowledge of the matter, ThredUp had called on investment banks to submit proposals for potential roles in its initial public offering. One of the sources who spoke with the financial media outlet said that the IPO, which might come as soon as early next year, could raise around $200 million to $300 million.
According to ThredUp’s 2020 Resale Report, the resale market is worth $28 billion today and projected to reach $64 billion in five years. An increasing number of traditional retailers have gotten in on the rising trend: Last year in April, Neiman Marcus took a minority stake in online consignment boutique Fashionphile, while France-based Vestiaire Collective opened its first permanent boutique as a shop-in-shop in Selfridges’ London flagship back in October.
What’s more, in May, Walmart announced a partnership with ThredUp, adding about 750,000 pre-owned items onto its website. The resale site has also previously teamed up with Gap Inc., Reebok and Abercrombie & Fitch, as well as announced deals with two department stores, Macy’s and JCPenney, last year.