ThredUP raises $ 175 million to dress up what your friends got rid of – Crunchbase News



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Start of online distribution ThredUP raised $ 175 million through a new round of financing led by Park West Asset Management and Irving Investors, the company announced on Wednesday.

He also revealed that he had received a "$ 75 million undisclosed investment" last year, bringing his total funding to $ 306.1 million, according to Crunchbase data. ThredUP has not given more details about the $ 75 million investment.

Its latest operation unveiled before the recently announced investment, its E series led by Goldman Sachs, raised $ 81 million in September 2015.

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Fashion resale space is heating up as more and more consumers come online to buy and sell clothing and accessories. ThredUP is called the "world's largest fashion resale market", with 35,000 brands available at 90% of the retail price.

ThredUP is competing with the Redwood City Poshmark in the area. Poshmark, which has a total funding of $ 153 million, last collected $ 87.5 million in its November 2017 Series E.

ThredUP_and_Friends

According to a report published in April 2019 by the Wall Street Journal, the Poshmark would like to be made public. The group had a turnover of nearly $ 150 million and "narrow losses" last year, reported WSJ.

It would not be the first start in resale mode to go public this year. Another major competitor, The RealReal, became public in June after raising $ 358 million in venture capital funds. The company valued at $ 990 million is now valued at $ 1.06 billion. Its title, which had reached an unprecedented $ 28.90 in its debut June 28, was $ 17.22 Wednesday afternoon. (The company's equity has recently been revalued due to commercial concerns and fears of a market-driven recession.)

The three companies, although they are related, do not do exactly the same thing. RealReal specializes in consignment luxury items, while Poshmark and ThredUP combine low-end and high-end items. RealReal has a team of authenticators that verifies that every item accepted for shipping and sold by the company is not an imitation. Poshmark offers authentication as a premium service and ThredUP authenticates the items sent to the company as part of its LUXE program.

ThredUP's new funding cycle follows last week's announcement of its partnership with JC Penney to bring used clothing and accessories to JCP's retail stores. ThredUP articles will be available in 30 JC Penney stores and the startup has also begun shipping in 40 Macy stores since the beginning of the month.

With this new money, ThredUP is launching what it calls "resale as a service," where retailers and brands can partner with the start-up to add inventory to their own stores and websites, according to a report. media article announcing funding. Retailers will also be able to distribute "clean-up kits" to buyers who donate unwanted clothes to ThredUP for purchase credits.

With a public company and the other two richly evaluated and well funded, it will be interesting to see what is the next of the three to file an IPO application.

Illustration credit: Li-Anne Dias

Correction: We misinterpreted the $ 75 million investment of ThredUP that was not yet revealed and we add it to its total funding. Total funding and chart have been corrected. We regret the mistake.

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