The valuation of the sneaker reseller StockX rises to $ 3.8 billion

After a record year of revenue, StockX completed a new round of financing that valued the high-end sneaker seller at $ 3.8 billion.

StockX on Thursday announced the closing of a $ 195 million secondary tender offering, as well as an additional $ 60 million in E-1 Series Primary shares.

“This news indicates the broad recognition and excitement for the long – term value of StockX,” CEO Scott Cutler said in a press release.

Altimeter Capital led the cash offering that included previous investors and the new investor the Dragoneer Investment Group. The company also confirmed that some employees will sell shares. This announcement increases StockX’s valuation by 35% from the $ 2.8 billion in December 2020.

“The company has quickly established itself as one of the most important online markets for Gen Z and thousands of consumers,” said Dragoneer partner Jared Middleman. “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.”

StockX is expected to be announced in the second half of 2021, according to a Dow Jones report Wednesday citing sources.

In response to the report, a StockX spokesman told CNBC: “Our focus is currently on global expansion and diversification of categories as we continue to grow our core business. There are great opportunities ahead, and our mission is now to perform. “

The company, which once described itself as the “stock market of sneakers”, has expanded its range to include collectibles, handbags, electronics and more. But the core business remains the same: users can buy or sell goods on an open market, with StockX providing the platform, authentication and niche content related to what it calls ‘current culture’.

The Covid pandemic has led to an increase in so-called leisure sales, and StockX, according to the company, has benefited from the sudden shift in consumer spending. StockX executives said they also closed more than 7.5 million trades and reached $ 1.8 billion in gross trade value last year. StockX previously reported $ 2.5 billion in GMV from the company’s launch in February 2016 to June 2020.

The resale market is becoming increasingly popular with buyers of all ages, with sites like The Real Real launching in 2019 and Poshmark launching earlier this year. StockX competes with similar sites like Stadium Goods and GOAT, but is widely regarded as the leader.

“We’re just scratching the surface of what StockX can deliver for the millions of global buyers and sellers that rely on the platform for a wide range of authentic current culture products,” Cutler said.