StockX LLC said it had notched a $3.8 billion valuation by selling $60 million of new stock and letting some employees sell $195 million of their shares to investors at that price point.
In a statement, the online marketplace that sells sneakers, streetwear, collectibles, and other items said the valuation represents a 35 percent increase over the $2.8 billion valuation following the company’s $275 million Series E funding round closed in December 2020.
“This news signals the broad recognition and excitement for the long-term value of StockX’s business as well as a growing appreciation for marketplace experiences,” said StockX CEO Scott Cutler. “Fundamental shifts in both consumer buying and investing behavior provide an immense growth opportunity for StockX, which has long lived at the intersection of consumer goods and tradable assets. We are just scratching the surface of what StockX can deliver for the millions of global buyers and sellers who count on the platform for a wide range of authentic, current culture products.”
Altimeter Capital led the all-cash offer, with participation from existing investors and new institutional investor Dragoneer.
“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. “The visionary leaders and team have built a new platform for trading and ownership that starts with trust and supports a growing list of products from sneakers to electronics to collectibles. Altimeter is excited to partner for the long haul as StockX becomes one of the most important e-commerce destinations in the world.”
In five years, StockX has grown to become one of the largest global marketplaces of its kind. For the year ended December 31, 2020, the company closed more than 7.5 million trades and hit $1.8 billion in gross merchandise value (GMV), which resulted in GAAP revenue of over $400 million. StockX also achieved break-even in the second half of 2020 and served more than 200 million visitors across 200 countries and territories.
“StockX is a leader at the intersection of two powerful trends: the large and intensifying demand for authenticated products and elevated price discovery and transparency in online marketplaces,” said Jared Middleman, partner at Dragoneer. “By innovating in these two areas, the company has rapidly established itself as one of the most important online marketplaces for Gen Z and millennial consumers. 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.”
Photos courtesy StockX