Secondhand clothing retailer ThredUp Inc has filed for a IPO disclosing a bigger than expected full-year loss ahead of its market debut.
ThredUp Inc has the backing of Goldman Sachs.
According to its filings, ThredUp, which was founded in 2009, has processed over 100 million unique secondhand items from 35,000 brands.
Users can either download the company’s app, or go to its website, and ship their used apparel, handbags, shoes and jewelry items to the company. Employees receive the items ensuring they are in good condition; the items are priced algorithmically, following which the items are photographed and are shipped to shoppers when sold.
In recent months, many digital resellers, including ContextLogic Inc, Poshmark Inc have all gone public.
Backed by Goldman Sachs, ThredUp’s investors include Redpoint Ventures, and Highland Capital Partners. It has reported a widening of its net loss to $47.9 million for the year ended Dec. 31, 2020, from $38.2 million a year earlier.
Full-year revenue, however, jumped 14% to about $186 million.
In a statement ThredUp said, it would use $500,000 from the proceeds to start an environmental policy function, to advocate the reuse of apparel.
In August 2019, ThredUp had received $175 million in funding which it had then said, it would use them to expand its platform to offer resale clothing services to retailers.
Goldman Sachs and Morgan Stanley are the lead underwriters for the offering.