ThredUp Chases Sizzling Demand For Used Clothing In $1.3 Billion IPO

ThredUp Chases Sizzling Demand For Used Clothing In $1.3 Billion IPO

The twelve-year-old company, which processes millions of pieces of used clothing every year, lost $48 million on $186 million in revenue in 2020. Online secondhand marketplace ThredUp made its public debut on Friday, hoping investors will overlook its lack of profits and instead focus on the growing demand for used goods among a generation of young shoppers. The San Francisco-based company raised $168 million at a $1. 3 billion valuation after pricing its shares at $14 apiece on Thursday evening, at the high end of its previous range. Shares popped 30% in the first few minutes of trading on Friday morning. ThredUp is one of a string of companies looking to capitalize on a growing market for secondhand goods, which is projected to more than double to $64 billion by 2024, according to the company's own estimates, which were compiled with GlobalData. Most Gen Z consumers see no stigma in buying secondhand, and 40% have bought used clothing, shoes or accessories, double that of Gen X and Boomers. "I think that is when investors start to pay attention: When you have big markets and companies like ours that have a real advantage," said cofounder and CEO James Reinhart in an