ThredUp Inc. plans to go public.
The online consignment marketplace has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission for an initial public offering of its Class A common stock. The number of shares to be offered and the price range for the proposed IPO have yet to be determined.
According to a statement, the IPO is expected to commence after the SEC completes its review process, subject to market and other conditions.
Two months ago, ThredUp reportedly called on investment banks to submit proposals for potential roles in its IPO. One of the sources who spoke with Bloomberg at the time said that the IPO could raise around $200 million to $300 million.
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 planned to offer a curated selection of the secondhand 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.
The coronavirus pandemic has also given resale a boost: According to a recent report from Vestiaire Collective, more people are engaging with circular fashion — both buying and selling — as part of a more sustainable lifestyle. It shared that the secondhand market currently represents $30 billion to $40 billion in value around the world, and will likely expand over the next five years with a compound annual growth rate of 15% to 20%. Although affordability, selection availability and item uniqueness are among the key drivers of secondhand buying, consumers’ escalating concerns over the state of the planet have also contributed to such growth.