The RealReal Notches $300M In IPO

The RealReal Notches $300M In IPO

In its U.S. initial public offering (IPO), eCommerce luxury reseller The RealReal Inc. has notched $300 million. The company priced its shares above a target range, having sold 15 million shares for $20 apiece following their marketing at $17 to $19, Bloomberg reported.

The offering was led by UBS Group AG, Credit Suisse Group AG and Bank of America Corp., per the filing. The RealReal reportedly has yet to generate a profit, even though Bloomberg noted “the market is intrigued by its growth.” Last year, the company had revenue of $207 million but lost $76 million, per the U.S. Securities and Exchange Commission (SEC), as cited by the report.

IBISWorld Pty Ltd. data indicates that used footwear, clothing and accessories represent a $10 billion market in the United States. At the same time, interest from young consumers who are conscious about sustainability has provided an opportunity for the industry.

News surfaced in April that The RealReal had authorized the sale of up to $70 million in new shares, which could put its valuation at $1.06 billion. The Prime Unicorn Index discovered a Delaware stock authorization filing, and it was reported at the time that there wasn’t a guarantee that The RealReal would sell the full amount of shares.

The company has notched a total of $288 million in funding from venture capital and private equity backers, including Great Hill Partners, Greycroft, PWP Growth Equity, Sandbridge Capital, Industry Ventures and Canaan. In July, the company raised $115 million in funding led by Perella Weinberg Partners, with participation from Great Hill Partners and Sandbridge Capital.

In other recent The RealReal news, the luxury online consignment retailer opened a brick-and-mortar store on New York City’s famed Madison Avenue. Its new store offers a mix of women’s ready-to-wear items, along with jewelry, fine watches, home decor and art pieces.


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