LOGO

stockx raises $275m series e, valuing the retailer at $2.8b

AVATAR Matt Burns
Matt Burns
Editorial Director, Insight Media Group
•December 16, 2020
Topics:StartupsStartupsstockxtiger globalTiger Global Management
stockx raises $275m series e, valuing the retailer at $2.8b

StockX has announced the completion of its Series E funding round, spearheaded by Tiger Global. This investment totals $275 million and establishes the company’s post-money valuation at $2.8 billion. These funds will be utilized to accelerate the company’s international expansion, further develop its product offerings, and broaden the range of categories available on the StockX platform. There is speculation that this financing could pave the way for an initial public offering in 2021.

Tiger Global Management took the lead on this funding round, with additional participation from Altimeter Capital, Sands Capital, and Whale Rock Capital Management.

According to StockX CEO Scott Cutler, the participation of these high-caliber investors demonstrates the market’s recognition of the significant opportunities within e-commerce for products related to current culture, and StockX’s leading position in meeting consumer demand in this area. He expressed his enthusiasm for welcoming the new partners and highlighted their collective expertise as a valuable asset in continuing the company’s growth and solidifying its status as a global marketplace leader.

Based in downtown Detroit, Michigan, this funding round represents the largest venture capital investment in the history of the state. With this latest round, the total amount of funding raised by StockX reaches $490 million.

StockX is experiencing substantial growth. Since its launch in 2016, the platform has facilitated sales in 200 countries through 13 million transactions, with half of those transactions occurring within the past year. The company surpassed $2.5 billion in lifetime gross merchandise value in June. International expansion is also accelerating, as evidenced by a 260% increase in non-U.S. trades during the third quarter of 2020 compared to the same period in 2019.

The company averaged 25 million monthly visitors during the most recent quarter.

Prior to the COVID-19 pandemic, CEO Cutler suggested the anticipated disruptions could benefit his company, citing the advantage of having facilities in multiple locations to navigate potential shutdowns. However, in April, StockX implemented a workforce reduction of 100 employees during the initial phase of the pandemic. Subsequently, the company’s performance improved significantly, as demonstrated by recent results.

In 2020, StockX expanded its global presence by opening new authentication centers, increasing its overall footprint by 50%. Earlier in the year, a facility was opened in Portland, Oregon. Similar to other authentication centers, this location serves as an intermediary between buyers and sellers, where StockX personnel verify the authenticity of products traded on the marketplace. Last month, the company launched comparable facilities in Toronto and Hong Kong to support its expansion into key international markets.

StockX is focusing on growth within the Asian-Pacific market. The company established an office in Tokyo in 2019 and introduced a localized platform experience in 2020. Last month, StockX reported a 500% increase in sell-side transactions across the region compared to 2019, and a 1,000% increase in Hong Kong.

StockX initially began as a marketplace for sneakers, utilizing a pricing model driven by supply and demand. Currently, in 2020, the company applies this same system to a wider variety of categories, including streetwear, luxury goods, collectibles, and in-demand electronics such as the PlayStation 5 and Xbox Series X. The company anticipates continued expansion into additional product areas.

Okay, I understand. I will rewrite the provided HTML content, adhering to all specified principles and requirements. Here's the rewritten content:

A Look at StockX’s Verification Process

#StockX#funding#series e#valuation#sneakers#collectibles

Matt Burns

Matt Burns is an experienced journalist specializing in technology, currently serving as Editorial Director at Insight Media Group. He previously held the position of Managing Editor at TechCrunch. Within his role at Insight Media Group, he oversees content strategy and manages programs for a portfolio of rapidly expanding technology-focused publications. Prior to this, he dedicated over fifteen years to TechCrunch, beginning as a writer and progressing to Managing Editor, where he played a key role in the newsroom’s growth and the organization of events like Disrupt and other TechCrunch conferences. He also contributed articles to Engadget in his earlier career. Matt is also a co-founder of the Resilience Conference, a series of events exploring the connections between national defense, security, and innovative startups. He is responsible for developing the conference program, facilitating discussions, and establishing “Launch @ Resilience,” a platform for showcasing emerging companies developing technologies for national security. Throughout his career, he has covered and led discussions on topics including artificial intelligence, transportation, cutting-edge technologies, and the challenges faced by technology businesses. He has conducted interviews with prominent figures such as global leaders, leading investors, startup founders, and CEOs of publicly traded companies. A native of Michigan with significant experience in Silicon Valley, he combines a Midwestern perspective with a keen editorial judgment. Outside of his primary roles, he collaborates with teams to refine their messaging and assess market entry strategies, and enjoys camping near Lake Michigan when his schedule allows.
Xin
Matt Burns