StockX is a Detroit-based online ecommerce marketplace that features an app where people can buy and sell limited edition and high-demand products like sneakers, handbags, electronics, watches and accessories, and more. Founded in 2015, the ecommerce business has the mission to “...provide access to the world’s most coveted items in the smartest way possible.”
Each product that is listed on the StockX website and app has its authenticity verified by a team of expert authenticators. According to the ecommerce company, these experts have verified tens of millions of products with a 99.95% accuracy rate. In addition, the buying and selling process works a bit like eBay, where sellers set a price for the item, and buyers have the option to either make a bid to negotiate prices or buy the product at the listed price to secure it.
The ecommerce app business claims it has an average of 25 million monthly visitors, with a lifetime gross merchandise value reaching $3.8 billion. StockX features items on its app from brands like Nike, Yeezy, Off-White, Gucci, Rolex, and more. Additionally, the company is involved in helping local communities through efforts in arts and culture, youth and recreation, sustainability, technology education, and social justice.
$3.8 Billion Company Valuation
Today, StockX announced the ecommerce business concluded a secondary tender offering of $195 million and an additional $60 million in Series E-1 shares, resulting in the company raising $255 million total. Altimeter Capital led the new round with an all-cash offer with participation from existing investors.
This new financing gives StockX a valuation of $3.8 billion, representing a 35% valuation increase from a previous funding round. Crunchbase data indicates the ecommerce app business last raised $275 million at a valuation of $2.8 billion in a Series E in December 2020.
Scott Cutler, CEO of StockX, said in a press release, “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...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 press release statement details that 2020 was a record year for the ecommerce company. StockX had $400 million in revenue last year, and even broke even in the second half of 2020, serving a marketplace of more than 200 million visitors across 200 countries and territories.
The Wall Street Journal reported Wednesday that the company is expected to go public in the second half of 2021. A spokesperson from StockX said to CNBC, “Our focus right now is on global expansion and category diversification, while continuing to grow our core business. There are massive opportunities ahead, and our mission right now is to execute.”
Other resale marketplaces like The Real Real went public in 2019, and Poshmark went public earlier this year.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.