ThredUp files for IPO

Marianne Wilson
Marianne Wilson profile picture

ThredUp Inc. is looking to cash in on the booming market for secondhand clothing.

The online resale marketplace for apparel and accessories has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering. The number of shares and prices haven’t been determined. ThredUp plans to lists its common stock on the Nasdaq Global Stock Market under the ticker TDUP.

In its prospectus, ThredUP said it had had 1.24 million active buyers and 428,000 active sellers as of late December. Buyer numbers were up 24% and seller numbers down 4% from December 2019.

Founded in 2009, ThredUp has partnered with a number of retailers in recent years, including Walmart, J.C. Penney and Abercrombie & Fitch. The company disclosed that its net loss widened to $47.9 million for the year ended Dec. 31, 2020, from $38.2 million a year earlier. Full-year revenue, however, rose14% to about $186 million.

ThredUp’s filing comes several months after another fashion resell marketplace, Poshmark , filed for an IPO. 

“We believe that we are in the early stages of capitalizing on a large and growing market opportunity in secondhand clothing,” ThredUp in the filing. “More millennial and Generation Z consumers are driving the shift to secondhand each year. As these consumers mature, generate more disposable income and become a larger portion of consumer wallet share, we expect that secondhand will benefit.”