Join now for FREE unlimited access to Reuters.com
March 3 (Reuters) – Goldman Sachs-backed second-hand clothing retailer ThredUp Inc went public with its IPO filing on Wednesday, revealing a bigger full-year loss ahead of its market debut.
The company, founded in 2009, has handled more than 100 million unique second-hand items from 35,000 brands, according to its filing. (https://bit.ly/2NRElgE)
Users download the company’s app or go to the website and ship in their used clothes, handbags, shoes and jewelry. Employees receive items, ensure they are in good condition, algorithmically rate them, photograph them, and ship them to buyers when they are sold.
E-commerce businesses have taken advantage of the COVID-19 pandemic. A fleet of digital retailers, including ThredUp peer Poshmark Inc (POSH.O) and ContextLogic Inc (WISH.O), the parent company of shopping app Wish, have gone public in recent months. Read more
ThredUp, whose investors include Goldman Sachs (GS.N), Highland Capital Partners and Redpoint Ventures, said its net loss widened to $47.9 million for the year ended Dec. 31, 2020, from $38. .2 million a year earlier.
However, full-year revenue jumped 14% to around $186 million.
The resale company said it would use $500,000 of the proceeds to start 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 apparel resale services to retailers. (https://reut.rs/3uUBUdy)
Goldman Sachs and Morgan Stanley are the main underwriters of the offer.
Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta
Our standards: The Thomson Reuters Trust Principles.