ThredUp Makes its Public Debut
ThredUp’s First Trading Day
Online second hand clothing platform ThredUp (TDUP) made its public debut on Friday. The company set its final listing price at $14. At the end of the trading day, ThredUp’s share price was $20.
ThredUp was most recently valued at $1.3 billion. The company’s revenue was $186 million in 2020—a 14% increase from the previous year. But ThredUp lost $48 million in 2020, which was up from $38 million in 2019.
The Rise of Online Thrifting
ThredUp specializes in used women’s and children’s clothing. Thrifted clothing has surged in popularity recently, especially among younger consumers who are conscious of their clothing’s impact on the environment. Because visiting in-person thrift shops was not an option for some of the past year, online used clothing retailers have seen their user numbers climb significantly.
At the end of 2020, ThredUp had 1.2 million active buyers—a 24% jump from the previous year. These shoppers placed 3.2 orders on average during the year and visited the ThredUp site six times per month.
The IPO Boom Continues
There was a flurry of IPOs in 2020. New public listings raised more funds than in any single year during the dot-com boom. This trend shows no signs of slowing down in 2021. So far this year, 88 companies have made their public debuts through IPOs. This is a 267% increase compared to the same period last year.
There have already been several successful IPOs in the online second hand clothing space. Poshmark (POSH) went public in January and its stock price more than doubled on its first trading day.
As more people receive vaccines and begin to return to some pre-pandemic habits, investors are curious to see what lies ahead for the online second hand clothing industry. Consumers may be eager to return to in-person thrift shops, though others may continue to scour online platforms for unique items and deals.
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