ThredUp Inc. could be preparing to go public.
According to Bloomberg, which cited people with knowledge of the matter, the online consignment marketplace has 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.
The people, who asked not to be named because talks are private, added that ThredUp’s plans have not yet been finalized. One of the company’s backers, Goldman Sachs Group Inc., is reportedly advising on the listing process.
FN has reached out to ThredUp for confirmation and comment.
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Last August, the e-thrift store received $175 million in funding, pushing its capital up to more than $300 million. The fundraising announcement came a week after it teamed up with two major nationwide brick-and-mortar players: While Macy’s launched a pilot with ThredUp at 40 of its outposts across the United States, JCPenney was gearing up to offer a curated selection of the second apparel and accessories retailer’s merchandise at 30 of its locations.
As traditional retail is increasingly overshadowed by e-commerce, the resale market has continued to expand — thanks to millennial and Gen Z consumers who are keeping a closer eye on their carbon footprints, as well budget-conscious shoppers looking to nab quality wares at more affordable prices. However, the coronavirus outbreak could threaten the growth of resale, which is worth $28 billion today and projected to reach $64 billion in five years, according to ThredUp’s 2020 Resale Report.
In the annual study, which was released in June, the San Francisco-based company shared that resale grew 25 times faster than retail last year. It reported that 50% of people were cleaning out their closets more than they were pre-pandemic and visitors spent 37% more time treasure-hunting on its site. Some shoppers, however, might be wary of buying secondhand due to fears of COVID-19’s ability to survive for hours to days on surfaces.