Shares of ThredUp Inc. opened 30% above the listing price in their market debut Friday, an early sign that investors continue to be bullish on online secondhand retail.
The Oakland, Calif.-based retailer’s stock began trading at $18.25, after being set at $14, which was the high end of its previously announced range. At the listing price, ThredUp, which sold 12 million shares, raised $168 million at a valuation of about $1.3 billion.
ThredUp will use the proceeds to expand the business, including adding new categories, and make new investments in the company’s operating platform and technology, co-founder and Chief Executive James Reinhart said in an interview Friday. The initial public offering is “just another validation of the market opportunity, and ThredUp plays in the biggest, fattest part of the market at our price point,” he said.
ThredUp, which sells women’s and children’s apparel, posted $186 million in revenue last year, a 14% jump from the previous year, according to a filing with the Securities and Exchange Commission. The company lost $48 million last year, compared with a loss of $38 million in 2019.
The company said it had 1.2 million active buyers at the end of last year, up 24% from the previous year. On average, those shoppers visited ThredUp six times a month and placed 3.2 orders in the year. The company defines active buyers as customers who have made at least one purchase in the past 12 months. “Customers are continuing to be engaged on our platform and continue to shop at higher rates,” Mr. Reinhart said. “I think it shows remarkable resilience.”