Thanks to sneakerheads from all over the world, Detroit-based retailer StockX is on its way to becoming a multibillion-dollar company.
TechCrunch is reporting that Tiger Global, which led the retailer’s Series E funding, brought in an impressive $275 million for the sneaker marketplace. This latest round of funding puts the company’s newest valuation at an impressive $2.8 billion.
In a statement, StockX CEO Scott Cutler said that the company would use the money to not only expand the available categories on the website, but to also fund global operations.
“The quality of investors joining us is a clear signal that the market recognizes that there is incredible opportunity in e-commerce for current culture products and StockX is best positioned to meet consumer demand for those products,” he said. “I’m thrilled to welcome our new partners to the team — their collective expertise will be invaluable as we continue to build on the momentum from the last year, and drive the growth to cement StockX’s position as the global marketplace leader.”
But some experts suggest that there may be more to the story than meets the eye.
An IPO For StockX In 2021?
Some experts are speculating that this latest valuation — and round of funding — is a sign of bigger things to come, specifically in the form of an IPO in 2021.
The growth of this very niche site has grown, exponentially, over less than a year. Breaking down the numbers, too, is an impressive task. Non-domestic sales rose 260% from last year, and more than half of their 13 million transactions took place over the last two months — which is impressive, given how many industries have been decimated by the pandemic.
In its previous round of funding, StockX not only added $110 million to its war chest, but it reported $100 million or more in monthly gross merchandise volume, with only 800 employees, at the time.
As part of that round of funding, Cutler took over the reigns. Cutler’s takeover of the regime is important, because he has a history of being a a former eBay exec and former NYSE executive vice president of the New York Stock Exchange. So, if anyone knows what it takes to make a company go public, it’s him.
Will It Really Go Public?
Thus far, no one from StockX has commented about the possibilities of taking the company public. However, according to Forbes Magazine, it’s well on its way to do so.
In July 2019, the company was valuated at just $1 billion; today, a little over a year later, it’s double that. That, alone, is pretty impressive, especially for a so-called “niche” company. But whether that will be enough to successfully bring it to the public is another matter. Forbes, however, is optimistic.
“Urban culture has always had an epochal influence on sneakers, which should help the company raise the reported $250 million it’s seeking. Since hip-hop loves to talk about their limited edition sneakers, it’s helped to create market envy and a reason for platforms like StockX to exist,” they write.