ThredUp Inc. has taken the first step to going public.
The online resale clothing giant said on Wednesday it has confidentially submitted paperwork with the U.S. Securities and Exchange Commission for an initial public offering. The size and price range of the offering have not yet been determined.
ThredUp is targeting a listing early next year and could raise $200 million to $300 million, Bloomberg News reported in August. In 2019, ThredUp Last raised $175 million from new and existing investors, at a valuation of $670 million.
However, the market for online resale clothing has boomed during the past couple of years, according to ThredUp’s 2020 Resale Report. The market is poised to grow 27% this year to about $9 billion in sales and could hit $36 billion by 2024, the report said. The total secondhand market, which also includes thrift and donation stores, is projected to hit $64 billion by the same date.
ThredUp, which launched in 2009, has entered into partnerships with a number of retailers, ranging from Walmart to Abercrombie & Fitch.