Inverse Zone

Gaming and Tech news

StockX sneaker-dealer valuation climbs to $ 3.8 billion

Scott Cutler, CEO, StockX

Scott Mlyn | CNBC

StockX, after a record year of revenue, has completed a new round of funding that values ​​the high-end sneaker reseller at $ 3.8 billion.

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

“This news signals the wide recognition and enthusiasm for the long-term value of StockX’s business,” CEO Scott Cutler said in a press release. “Fundamental changes in consumer buying and investing behaviors present a huge growth opportunity for StockX.”

Altimeter capital led the all-cash offering which included previous investors and new investor Dragoneer Investment Group. The company also confirmed that some employees will sell shares. This announcement increases StockX’s valuation by 35% from December 2020’s $ 2.8 billion.

“The company has quickly established itself as one of the most important online marketplaces for Generation Z and Millennial consumers,” said Jared Middleman, Partner at Dragoneer. “This position has opened up a number of promising new growth opportunities, and we are delighted to support the StockX team as they strive to realize this potential.

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

In response to that report, a spokesperson for StockX told CNBC, “We are currently focused on global expansion and category diversification, while continuing to grow our core business. There are huge opportunities at come, and our mission right now is to execute. “

Source: StockX

Source: StockX

The company that once billed itself as the “Sneaker Exchange” has expanded its offering to collectibles, handbags, electronics and more. But the core business remains the same, users can buy or sell products in an open marketplace, with StockX providing the platform, authentication and niche content related to what it calls “current culture”.

The Covid pandemic has led to a surge in so-called athleisure sales and StockX has benefited from the abrupt shift in consumer spending, generating more than $ 400 million in revenue in 2020, according to the company. StockX executives said they also closed more than 7.5 million trades and reached $ 1.8 billion in gross merchandise value last year. StockX previously reported $ 2.5 billion in GMV between the company’s launch in February 2016 and June 2020.

The resale market is increasingly popular with buyers of all ages with sites like The real real go public in 2019 and Poshmark starting earlier this year. StockX competes with similar sites like Stadium Goods and GOAT, but is widely seen as the leader.

“We are only scratching the surface of what StockX can offer the millions of global buyers and sellers who rely on the platform for a wide range of authentic products from today’s culture,” said Cutler.

Source link