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Online thrift platform Poshmark files to go public after turning profitable during the pandemic

Dec 18, 2020, 17:29 IST
Business Insider
Rafael Henrique/SOPA Images/LightRocket via Getty Images
  • Online fashion marketplace Poshmark filed for an initial public offering on Thursday after turning profitable during the pandemic.
  • The clothing resale platform listed the size of its offering at $100 million. An IPO price range hasn't been set yet.
  • The company said its revenue rose 28% in the first three quarters of 2020, to $192 million, from $150 million during the same period last year.
  • Poshmark had more than 201 million secondhand and new items for sale as of September 30, with close to 32 million active users.
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Poshmark, the popular online marketplace for second-hand clothing, released a Securities and Exchange Commission filing to go public on Thursday.

In its S1-filing, Poshmark listed the size of its initial public offering at $100 million. Usually, companies mention placeholder figures in their IPO filings until a price range is set.

The e-commerce platform plans to list on the Nasdaq under the ticker symbol "POSH."

Poshmark said it had more than 201 million secondhand and new items for sale as of September 30, and close to 32 million active users.

Revenue rose 28% in the nine months that ended September to about $193 million. This was up from $150 million during the same period last year. Profit swung to about $21 million in the same period, compared with a net loss of $34 million a year ago.

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The social shopping app allows users, known as "Poshers," to buy and sell clothes and accessories. These include everything from pre-owned T-shirts to vintage dresses and private labels. Bidding on and selling merchandise even led to some earning six-figure incomes solely through their Poshmark stores.

The company's IPO adds to a line of unicorn tech startups that just made their stock market debuts, including DoorDash and Airbnb, both of which saw huge post-IPO stock pops during a record year for IPOs. That indicates the level of market appetite for tech platforms.

Business Insider's Candy Cheng reported Poshmark had previously put its IPO on hold in 2019, but delayed it to focus on boosting sales and improving its execution.

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