ThredUp shares increase by 30% at the beginning of the market

Shares of ThredUp Inc. they opened 30% above the listing price on their market debut on Friday, an early sign that investors continue to be on the rise in second-hand online retail sales.

Shares of the Oakland, California retailer began trading at $ 18.25, after being set at $ 14, which is the pinnacle of its previously announced range. At the listing price, ThredUp, which sold 12 million shares, raised $ 168 million at a valuation of about $ 1.3 billion.

ThredUp will use the proceeds to expand its business, including the addition of new categories and make new investments in the company’s operating and technology platform, co-founder and CEO James Reinhart said on Friday. The initial public offering is “just another validation of the market opportunity, and ThredUp plays in the largest and fattest part of the market at our price,” he said.

ThredUp, which sells women’s and children’s clothing, had revenue of $ 186 million last year, up 14 percent from a year earlier, according to a Securities and Exchange Commission case. The company lost $ 48 million last year, compared to a loss of $ 38 million in 2019.

The company said it had 1.2 million active buyers at the end of last year, up 24% from a year earlier. On average, those buyers visited ThredUp six times a month and placed 3.2 orders a year. The company defines active buyers as customers who have made at least one purchase in the last 12 months. “Customers continue to be employed on our platform and continue to buy at higher rates,” Mr Reinhart said. “I think it shows remarkable resilience.”