StockX Scores $3 Billion Valuation
Since launching in 2016, StockX has become the de facto place to buy and sell rare sneakers and apparel from brands such as Jordan, adidas, Nike and Supreme. StockX, which overtook eBay in 2017 in total sneaker transactions, has authenticated more than 3.5 million Jordan sneakers since it launched, including more than 1 million this year alone.
StockX has created a platform that looks just like a stock brokerage account. You can view real time prices for sneakers, which even have their own tickers, while sifting through data such as their price over time, premium over retail price and even volatility.
As the site has grown in popularity, StockX has branched out beyond sneakers and apparel to other high-demand consumer goods. StockX now has listings for a variety of items such as art and collectibles, watches, handbags and electronics. Similar to eBay, you can now buy anything from a Rolex to a NVIDIA graphics card on StockX.
Like many e-commerce sites, StockX has seen a surge in users this year amid the pandemic. Earlier this year, StockX said it surpassed both $2.5 billion in lifetime gross merchandise value as well as 10 million lifetime trades, with more than 50% of them occurring in the last year.
"Platforms that actively disrupt commerce are uniquely positioned to meet the consumer where they now are, which is one of the key reasons we've seen this recent growth," StockX CEO Scott Cutler said.
StockX also reported a blowout Cyber Weekend as 10 million users visited the site over the four-day period, with nearly 100,000 new users making a purchase on StockX for the first time. Microsoft's Xbox Series X and Sony's PlayStation 5 were the fourth and fifth best-selling items, respectively, throughout Cyber Weekend on StockX, proving the site is becoming more commonly used to buy and sell items other than sneakers.
StockX announced yesterday it raised $275 million in a Series E funding round that values the company at $2.8 billion. The funds will be used for product development and to accelerate StockX's global expansion. StockX says revenue grew by more than 75% year-over-year in the third quarter to more than $100 million as the company achieved break-even.
The round was led by Tiger Global Management with new participation from other investors. The round brings Detroit-based StockX's total funding to $490 million and marks the largest VC funding round in Michigan history.
"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," Cutler 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."
Through the end of the third quarter, StockX now stands at more than 13 million lifetime trades, with 50% of them occurring this year. StockX says it saw an average of 25 million global visitors per month during the quarter.
As StockX closes its latest funding round and continues to grow, it may not be long before shares of StockX hit the public markets.
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