Retail

Funding Could Bring The RealReal To $1B Valuation

The RealReal, an online retailer for authenticated luxury consignment, has authorized the sale of up to $70 million in new shares that could put its valuation at $1.06 billion. A Delaware stock authorization filing was discovered by the Prime Unicorn Index. However, there is no guarantee that The RealReal will sell the full amount of shares, and the company declined to comment.

Led by Founder and CEO Julie Wainwright, the RealReal has raised a total of $288 million in funding from venture capital and private equity backers, including Great Hill Partners, Sandbridge Capital, PWP Growth Equity, Industry Ventures, Greycroft and Canaan. In July, the company, which was founded in 2011, raised $115 million in funding, led by Perella Weinberg Partners, with participation from Sandbridge Capital and Great Hill Partners.

"Over the last seven years, we have re-envisioned the experience of buying and selling luxury goods, and become a leader in the circular economy for luxury goods," Wainwright said at the time.

Earlier this year, it was reported that the online retailer was considering an initial public offering (IPO) for later this year. The RealReal has reportedly started holding discussions with investment banks to help it go public, and even issued a Request for Proposal to potential advisors and underwriters.

The San Francisco-based retailer has also recently expanded its brick-and-mortar presence, as well as launched additional eCommerce fulfillment centers. The company currently has eight luxury consignment offices, where customers can come in for free evaluations of their luxury items.

In an interview in 2017, Wainwright confirmed the company’s desire to go public in the future. With this upcoming round, The RealReal would be poised for an IPO next year.

“That’s the goal,” Wainwright said in that interview. “We really aren’t in the mood to sell the business; we’re in the mood to go public at some point in the future.”

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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