ThredUp is making big moves to expand internationally.
The US-based resale platform announced today that it plans to acquire Remix Global AD, a major European fashion resale site that posted a total revenue of $33.9 million in 2020. The move marks the start of ThredUp’s commitment to international expansion in Europe, where the secondhand market is expected to grow to $39 billion by 2025, according to GlobalData research cited by ThredUp.
The price of the deal includes approximately $28.5 million, with $6.5 million in restricted stock units given to the Remix management team that will vest over four years.
ThredUp raised $168 million in its initial public offering in March, and earned a valuation of about $1.3 billion. The company powers resale for major retailers and brands such as Walmart, Madewell, and Vera Bradley through its Resale-as-a-Service (RaaS) technology. The Remix acquisition opens the door for ThredUp to expand its RaaS technology to brands and retailers in Europe.
“Lyubomir and his team have built a strong, lean, customer-first business, and they know how to deliver resale operationally across multiple markets in Europe,” James Reinhart, cofounder and CEO at ThredUp, said in a statement. “We’re bullish about the massive opportunity in the European resale market and are thrilled about the chance to build on Remix’s technology and operational expertise to help accelerate its growth.”
Remix utilizes a logistics system that allows it to quickly process millions of garments. ThredUp plans to invest in Remix’s infrastructure, product offerings, and strategy to help the platform expand across the continent. Remix CEO Lyubomir Klenov will continue to lead the company, which will remain an independent business under ThredUp.
“We’ve long admired ThredUp’s leadership in the United States and their dedication to building a mission-driven company that makes it easy to buy and sell secondhand,” said Remix CEO Lyubomir Klenov in a statement. “Together, I believe we can build upon Remix’s core operational engine, technology, and logistics to bring that scalable experience to the European market, where resale has only scratched the surface.”
ThredUp is one of multiple popular resale websites that have gone public in the last few years. The RealReal was the first US resale player to go public in June of 2019. Poshmark followed suit with a January IPO. This year, Poshmark and StockX have both announced plans for expansion in Australia.
ThredUp’s Remix deal is expected to close in Q4 of 2021.