ThredUp, the digital-first fashion resale marketplace, has taken a major step towards going public with the filing of a confidential IPO in the United States. The California-based company recently announced its submission of a draft registration statement to the U.S. Securities and Exchange Commission, with hopes of being listed by early 2021.

While the specifics of the IPO, such as the number of shares and price range, remain undisclosed, Bloomberg reports suggest that ThredUp could potentially raise between $200 million to $300 million through the offering. This comes after the company successfully raised $175 million in a funding round last year, with notable investors including Goldman Sachs, Upfront Ventures, Trinity Ventures, Park West Asset Management, and Irving Investors.

ThredUp’s decision to go public follows closely on the heels of its rival Poshmark, which also filed confidentially for an IPO in September. Both companies have been focusing on the thriving resale market, which is poised to reach $64 billion within the next five years, according to Global Data statistics cited by ThredUp. Despite the challenges faced by the retail sector due to the COVID-19 pandemic, ThredUp proudly claims to have maintained a steady 20% growth since the implementation of shelter-in-place orders.

Since its establishment in 2009, ThredUp has successfully partnered with well-known retailers including J.C. Penney, Abercrombie & Fitch, Madewell, and Walmart. These lucrative collaborations have primarily relied on the company’s “Resale-as-a-Service” model. While ThredUp’s distribution centers remain operational, its physical retail locations are temporarily closed due to the ongoing health crisis. However, the company has adeptly adapted to the digital landscape, capitalizing on its online platform to meet the surging demand for secondhand fashion.

The decision to file for an IPO indicates ThredUp’s utmost confidence in the continued growth of the resale market, even amidst unprecedented challenges. As the company gears up to go public, investors and industry experts will be closely monitoring its progress, eagerly anticipating how ThredUp’s digital-first approach can harness the expanding market for sustainable fashion.

Useful links:
ThredUp Official Website
Poshmark Official Website