The valuation of the StockX sneaker reseller jumps to $ 3.8 billion

StockX, after a record year of revenue, has completed a new round of financing that puts the state-of-the-art sneaker distributor at $ 3.8 billion.

On Thursday, StockX announced the completion of a $ 195 million sub-bid, as well as an additional $ 60 million in E-1 Series primary shares.

“This news signals widespread recognition and enthusiasm for the long-term value of the StockX business,” CEO Scott Cutler said in a press release, “fundamental changes in both consumer buying and investment behavior offer a huge growth opportunity for StockX “.

Altimeter Capital led the cash offering that included previous investors and new investor Dragoneer Investment Group. The company also confirmed that some employees will sell shares. This announcement increases the StockX valuation by 35% compared to the $ 2.8 billion in December 2020.

“The company has quickly established itself as one of the largest online markets for Generation Z and Millennial consumers,” said Jared Middleman, partner at Dragoneer. “This position has unlocked a number of promising new growth opportunities and we are excited to support the team.” StockX while working to realize this potential. ”

StockX is expected to go public in the second half of 2021, according to a Dow Jones report on Wednesday, citing sources.

In response to this report, a StockX spokesman told CNBC: “We are currently focusing on global expansion and diversification of categories, while continuing to grow our core business. There are massive opportunities ahead, and our mission right now we have to execute “.

The company, which was once billed as the “Sneakers Exchange”, has expanded its offerings to collections, handbags, electronics and more. But the core business remains the same, users can buy or sell goods in an open market, with StockX providing the platform, authentication and niche content related to what it calls “current culture”.

The Covid pandemic led to an increase in so-called sports sales and StockX benefited from the sudden change in consumer spending, generating revenues of over $ 400 million in 2020, according to the company. StockX executives said it also closed more than 7.5 million transactions and reached $ 1.8 billion in gross value last year. StockX previously reported $ 2.5 billion in GMV from the company’s launch in February 2016 to June 2020.

The resale market is becoming increasingly popular with shoppers of all ages, with sites like The Real Real set to go public in 2019 and Poshmark debuting earlier this year. StockX competes with similar sites such as Stadium Goods and GOAT, but is widely considered a leader.

“We’re just scratching the surface of what StockX can deliver for the millions of global buyers and sellers who build on the platform for a wide range of authentic, today’s culture products,” Cutler said.