ThredUp Makes its Public Debut

ThredUp’s First Trading Day

Online second hand clothing platform ThredUp (TDUP) made its public debut on Friday. The company set its final listing price at $14. At the end of the trading day, ThredUp’s share price was $20.

ThredUp was most recently valued at $1.3 billion. The company’s revenue was $186 million in 2020—a 14% increase from the previous year. But ThredUp lost $48 million in 2020, which was up from $38 million in 2019.

The Rise of Online Thrifting

ThredUp specializes in used women’s and children’s clothing. Thrifted clothing has surged in popularity recently, especially among younger consumers who are conscious of their clothing’s impact on the environment. Because visiting in-person thrift shops was not an option for some of the past year, online used clothing retailers have seen their user numbers climb significantly.

At the end of 2020, ThredUp had 1.2 million active buyers—a 24% jump from the previous year. These shoppers placed 3.2 orders on average during the year and visited the ThredUp site six times per month.

The IPO Boom Continues

There was a flurry of IPOs in 2020. New public listings raised more funds than in any single year during the dot-com boom. This trend shows no signs of slowing down in 2021. So far this year, 88 companies have made their public debuts through IPOs. This is a 267% increase compared to the same period last year.

There have already been several successful IPOs in the online second hand clothing space. Poshmark (POSH) went public in January and its stock price more than doubled on its first trading day.

As more people receive vaccines and begin to return to some pre-pandemic habits, investors are curious to see what lies ahead for the online second hand clothing industry. Consumers may be eager to return to in-person thrift shops, though others may continue to scour online platforms for unique items and deals.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21032903