Goldman-backed second-hand clothing retailer Thredup files for IPO
An order from ThredUp. ThredUp.
Goldman Sachs-backed second-hand clothing retailer ThredUp Inc went public on Wednesday, revealing a larger annual loss ahead of its market debut.
The company, founded in 2009, has processed more than 100 million unique second-hand items from 35,000 brands, according to its file.
Users download the company’s app or go to the website and ship their second-hand clothes, handbags, shoes, and jewelry. Employees receive the items, make sure they are in good condition, algorithmically rate them, photograph them, and ship them to buyers when they are sold.
E-commerce businesses have benefited from the Covid-19 pandemic. A fleet of digital resellers, including Poshmark Inc, the peer of ThredUp and ContextLogic Inc, the parent company of the Wish shopping app, has gone public in recent months.
ThredUp, whose investors include Goldman Sachs, Highland Capital Partners and Redpoint Ventures, said its net loss widened to $ 47.9 million for the fiscal year ended Dec.31, 2020, from $ 38.2 million one year earlier.
Annual revenue, however, jumped 14% to around $ 186 million.
The resale company said it would use $ 500,000 of the product to launch an environmental policy function, to advocate for the reuse of clothing.
ThredUp received $ 175 million in funding in August 2019, which it said would be used to expand its platform to offer clothing resale services to retailers.
Goldman Sachs and Morgan Stanley are the main underwriters of the offer.
Report by Niket Nishant in Bangalore; Editing by Shounak Dasgupta.