Online styling company Stitch Fix is in preliminary discussions with bankers regarding an initial public offering, according to Fortune.
However, a Stitch Fix spokeswoman said the company “has neither turned down late-stage funding from interested investors nor will our Board of Directors be meeting next month to decide on plans for an IPO.”
Founded in 2011, the company offers a subscription service of regular fashion “fixes,” or curated boxes of clothing compiled by both human stylists and data analytics. For a $20 styling fee, Stitch Fix sends its customers five clothing and accessory items each month that they can decide to buy or return. Customers only pay for what they keep.
The company has become a force in the eCommerce market, going after competitors with gusto. It recently expanded into the menswear market so that it could take on existing sites Trunk Club and Bombfell, as well as launched Stitch Fix Plus, which will serve women sizes 14 and up. That pits it against startup Dia&Co, a clothing subscription service for plus-size women. And Keaton Row, an online styling service similar to Stitch Fix, shut down its operations this week.
While the company hasn’t hit $1 billion in revenue yet, it has raised about $46 million in venture capital from backers including Benchmark Capital and Lightspeed Venture Partners. The company’s most recent valuation was $300 million, and it has annual sales of more than $500 million.