Sneaker reseller StockX’s valuation jumps to $3.8 billion

StockX, an online marketplace that primarily resells sneakers along with other offerings like handbags. Electronics and more, has seen a rise in the market valuation from 2.8billion in December 2020 to 3.8billion currently. This represents a 35% increase in total valuation of the company over the past 4 months.

“This news signals the broad recognition and excitement for the long-term value of StockX’s business as well as a growing appreciation for marketplace experiences,” said StockX CEO Scott Cutler. “Fundamental shifts in both consumer buying and investing behavior provide an immense growth opportunity for StockX, which has long lived at the intersection of consumer goods and tradable assets. We are just scratching the surface of what StockX can deliver for the millions of global buyers and sellers who count on the platform for a wide range of authentic current culture products.”

The Covid pandemic leads to an increase in so-called athleisure sales and StockX gained an advantage from the abrupt shift in consumer spending, generating over $400 million in revenue in 2020, according to the company. StockX executives said it also closed upwards of 7.5 million trades and reached $1.8 billion in gross merchandise value (GMV) last year. StockX previously announced $2.5 billion in GMV from the start of the company in February 2016 to June 2020.

The rise in Valuation was also due to the $225 million financing. StockX reported on Thursday, on top of a $195 million secondary tender offering, there was also a further $60 million series E-1 primary shares. Altimeter Capital led the all-cash offer, with involvement of existing investors and recently partnered institutional investor Dragoneer. Some employees will also take part in the sale of the shares.

“StockX has quickly become one of the largest and fastest-growing consumer marketplaces – serving an accelerating global audience thirsting for authenticity and relevant products,” said Brad Gerstner, founder and CEO of Altimeter Capital. “The visionary leaders and team have built a new platform for trading and ownership that starts with trust and supports a growing list of products from sneakers to electronics to collectibles. The altimeter is excited to partner for the long haul as StockX becomes one of the most important e-commerce destinations in the world.”

“StockX is a leader at the intersection of two powerful trends: the large and intensifying demand for authenticated products, and elevated price discovery and transparency in online marketplaces,” said Jared Middleman, Partner at Dragoneer. “By innovating in these two areas, the company has rapidly established itself as one of the most important online marketplaces for Gen Z and millennial consumers. This position has unlocked a number of promising new growth opportunities, and we are excited to support the StockX team as they work to realize this potential.”

Stock X is expected to go public in the second half of 2021.

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