Online resale site ThredUp raised an additional $175 million in venture capital.
The e-commerce platform announced its fundraising today, saying it intends to use the additional money to offer resale services to retailers. ThredUp’s total capital now totals over $300 million.
The site’s increased funds comes following news last week of partnerships with two big-name traditional brick-and-mortar retailers, Macy’s and JCPenney. Macy’s launched a pilot with the retail site at 40 of its stores across the U.S., while JCPenney will soon offer a selection of ThredUp’s secondhand women’s apparel and accessories at 30 of its locations.
In a time when traditional retail has struggled, the resale market has been expanding, thanks to millennial and Gen Z customers keeping a closer eye on their carbon footprints — as well more budget conscious consumers looking to nab quality wares at more affordable prices. According to a 2019 trend report from ThredUp, the resale market is worth $24 billion today and expected to hit $51 billion by 2023 — with a growth rate in the past three times 21 times that of traditional retail.
With the outlook for the resale market looking positive, other re-comm sites have also raised lots of money. Luxury consignment specialist TheRealReal became the first resale platform to go public in June, securing $300 million at its IPO and hitting a market cap of nearly $2.5 billion. Meanwhile, sneaker resale marketplace StockX secured another $110 million in capital this June, catapulting its valuation to $1 billion unicorn status.
Below, career and life-coaching advice from Saucony’s president Anne Cavassa.
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