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ThredUp Aims For $100 Million U.S. IPO

Mar. 05, 2021 3:28 PM ETThredUp Inc. (TDUP)


  • ThredUp has filed to raise $100 million in an IPO, although the final figure may differ.
  • The firm operates an online marketplace for buying and selling secondhand apparel and related goods for women and children.
  • TDUP has grown through the pandemic but is generating increasingly high operating losses with no path to profitability.
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Quick Take

ThredUp (NASDAQ:TDUP) has filed to raise $100 million in an IPO of its Class A common stock, according to an S-1 registration statement.

The firm provides an online destination for reselling lightly used women’s and children’s apparel and related goods.

TDUP is approaching a $200 million annual revenue run rate, but growth is only moderate and the firm is generating high operating losses with no obvious path to profitability.

I’ll provide a final opinion when we learn more about the IPO from management.

Company and Technology

Oakland, California,-based ThredUp was founded to develop a marketplace for the sale of secondhand goods provided by consumers, brands and retailers.

Management is headed by co-founder and CEO James Reinhart, who was previously co-founder of the Beacon Education Network.

Below is a brief overview video of ThredUp:

Source: thredUP

The company’s primary offerings include:

  • Women's apparel

  • Kids apparel

  • Shoes

  • Accessories

ThredUp has received at least $247 million from investors including Trinity Ventures, Redpoint Ventures, Upfront Ventures, Global Private Opportunities Partners and Park West Ventures.

Customer/User Acquisition

The firm seeks users of its marketplace via online search engine optimization, earned media and word of mouth.

As of Dec. 31, 2020, the site had 1.24 million Active Buyers and 428,000 Active Sellers.

It has "processed over 100 million unique secondhand items" since its founding in 2009.

Marketing, Sales and G&A expenses as a percentage of total revenue have dropped as revenues have increased, as the figures below indicate:

Marketing, Sales, G&A

Expenses vs. Revenue







Source: Company registration statement

The Marketing, Sales and G&A efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Marketing, Sales and G&A spend, was 0.3x in the most recent reporting period.

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This article was written by

Donovan Jones profile picture

Donovan Jones is a research specialist with 15 years of experience identifying opportunities for IPOs and software companies.

He also leads the investing group

IPO Edge

which offers: actionable information on growth stocks through first look S-1 filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.

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Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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