Poshmark saw its valuation more than double following its Nasdaq debut, with shares closing at $101.50, the Wall Street Journal (WSJ) reported on Thursday (Jan. 14).
The digital marketplace for second-hand fashion describes itself as a social platform, setting itself apart from rivals in the booming resale landscape. Poshmark doesn’t buy inventory; instead, it collects a fee on anything people post for sale on the platform.
In its Securities and Exchange Commission filing, Poshmark said the platform encourages users to tap inspiration from the like-minded people in the digital community “to discover, connect, and curate their network and news feed.”
“Our sellers today span 98 percent of the ZIP Codes in the United States and really span all of the different age demographics. We’ve also diversified where we’re starting to be increasingly appealing to not just women, but also men,” Manish Chandra, Poshmark’s founder and chief executive, said in an interview, per WSJ.
Poshmark’s valuation is now over $3 billion, up from $1.25 billion in 2019. FactSet data per WSJ shows that Poshmark opened trading on Thursday at $97.50, more than double the company’s IPO price of $42 per share.
The Silicon Valley company raised $277.2 million in its IPO and will use the new funds for expansion efforts and to move into more merchandise categories beyond fashion. Chandra said that the platform’s seller community will be the directional guidepost.
Poshmark joins a slew of digital startups filing IPOs as the coronavirus pandemic continues to fuel eCommerce sales. FinTech installment lender Affirm more than doubled its valuation when it went public earlier this week. Shares of Petco closed trading yesterday with up 63 percent over its IPO price. Last month, Airbnb shares more than doubled and DoorDash’s stock soared 86 percent, per the WSJ.
The resale market exploded in 2020, growing 25 times faster than the previous year. The $28 billion market is anticipated to hit $64 billion by 2025.
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