(Bloomberg)—ThredUp Inc., an online retailer for second-hand clothing, filed confidentially for a U.S. initial public offering.
The company, based in Oakland, California, submitted a draft registration statement to the U.S. Securities and Exchange Commission, and the IPO will commence after regulator’s review process, the firm said in a statement on Wednesday. The number of shares to be offered and the price range of the offering has not been determined, ThredUp said.
ThredUp is targeting a listing early next year and could raise $200 million to $300 million, Bloomberg News reported in August. Goldman Sachs Group Inc., which is an investor in the company, is advising it on its proposed listing. Last year, the company raised $175 million from new and existing investors, including Park West Asset Management and Irving Investors, at a valuation of $670 million, according to PitchBook.
The firm is joining rival Poshmark Inc. in tapping the public market. Poshmark said in September that it confidentially filed for an offering after delaying the listing for almost a year to focus on boosting sales and improving execution, Bloomberg News reported. Poshmark is No. 29 in the ranking of Digital Commerce 360 Top 100 Online Marketplaces. Poshmark’s total gross merchandise value lifted 37.6% year over year in 2019, according to Top500Guide.com
ThredUp is part of a growing number of ecommerce sites selling used goods and competing against consignment shops and Salvation Army Thrift Stores. The digital resale market is poised to grow 27% this year to about $9 billion in sales and could quadruple that total by 2024, ThredUp said in a report earlier this year.
Despite concerns about consumers reducing purchases of used clothes during the coronavirus pandemic, ThredUp said it has added new customers.
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