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Business

ThredUp files for IPO

By Kristopher Fraser

Oct 21, 2020

ThredUp, a clothing resale platform, has said that it has confidentially submitted paperwork to the U.S. Securities and Exchange Commission for an initial public offering of its Class A common stock. The news was reported by Reuters.

In a statement, the company said that size and price range of the common stock has not been determined. ThredUp’s IPO comes after investors have begun demanding new stocks. While the economy took a major hit due to the coronavirus, as did the stock market for a moment, IPO’s have still managed to raise 114 billion dollars in 2020, outpacing 62.5 billion dollars in 2019.

In August 2019, ThredUp received 175 million dollars in fundraising. In total, the company has seen 340 milion dollars in funding from big name investors including Goldman Sachs and Redpoint Ventures.

Resale continues to be one of the cash cows in the fashion industry. The resale market is expected to be valued at 64 billion dollars in 5 years according to CNBC. As of 2020, the secondhand apparel market is valued at 28 billion dollars.