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StockX Valued 35% Higher At $3.8B In Latest Funding

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StockX Valued 35% Higher At $3.8B In Latest Funding

StockX LLC said Thursday it has raised $255 million in a funding round led by existing investor Altimeter Capital and Dragoneer Investment Group as a new investor, valuing the e-commerce startup at $3.8 billion.

What Happened: StockX raised $195 million in a secondary tender offering and an additional $60 million in Series E-1 primary shares, the company said in a statement.

“StockX has quickly become one of the largest and fastest growing consumer marketplaces - serving an accelerating global audience thirsting for authenticity and relevant products,” said Brad Gerstner, founder and CEO of Altimeter Capital, in a statement.

Launched in 2015, the Detroit-based startup has risen in popularity serving as an online marketplace, facilitating auctions between sellers and buyers. The company reported closing more than 7.5 million trades and hit $1.8 billion in gross merchandise value (GMV) in 2020, which resulted in GAAP revenue of over $400 million.

StockX claims it achieved break-even in the second half of 2020 and served more than 200 million visitors across 200 countries and territories.

See Also: PlayStation 5, Xbox, And Sneakerheads Drive StockX GMV To Record Highs Over Cyber Weekend

Why It Matters: The latest fundraise implies a 35.7% jump in the startup’s valuation from the $2.8 billion it was valued at in a $275 million Series E funding round in December last year. The online marketplace retails sneakers, streetwear, and other collectibles —competing with companies like eBay Inc (NASDAQ: EBAY), Wayfair (NYSE: W), and Etsy Inc (NASDAQ: ETSY) in the space.

StockX describes itself as a “stock market of things,” and sets itself apart from the likes of eBay by offering a proprietary process to cut down on fake goods available on the platform. The marketplace sets resale prices based on data aggregation.

Online marketplace ecosystems are inviting investor interest, especially in light of the COVID-19 pandemic, as they are seen to have the potential to reach a wide target base.

Altimeter and Dragoneer earlier this year also both backed California-based video game developer Roblox Corp. (NYSE: RBLX).

Benzinga editor Neer Varshney contributed to this report.

 

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