Summary List Placement
Online thrift platform Poshmark went public on the Nasdaq on January 14, opening at $97.50.
Cofounder and CEO Manish Chandra’s 9.2% stake, which was disclosed in the company’s S-1, is worth $585 million, including options exercisable within the next 60 days.
Poshmark declined to comment for this piece, citing the quiet period surrounding the IPO.
Tennis legend Serena Williams, who joined the board of directors in 2019, has options to buy $8 million worth of shares.
“I love working with a company that gives anyone an opportunity to become an entrepreneur,” Williams said in a statement when she joined the board. She owns a clothing line, SERENA, and has a VC firm dedicated to companies led by women and people of color.
Poshmark, founded in 2011, allows users to buy and sell second-hand clothing and accessories. Users, nicknamed “Poshers,” are able to operate storefronts from their home, with some making six-figure incomes from Poshmark.
The firm had considered an IPO in 2019 but postponed in order to focus on growing sales, according to Insider’s Candy Cheng. It was worth the wait.
The social shopping app became profitable during the pandemic as customers shifted to e-commerce in order to social distance. In the S-1 filed with the Securities Exchange Commission, Poshmark said it made a profit of $21 million in the nine months ending September 30, a marked turnaround from its $34 million net loss from the same period last year. Revenue rose 28% to about $193 million, up from $150 million over that time frame last year. The platform has 201 million secondhand and new items for sale as of September 30, and nearly 32 million active users.
Chandra told Insider in May that Poshmark’s operations were not significantly disrupted by Covid-19 as its supply chain does not rely on manufacturers and it already had a robust shipping system.
“Our innate architecture supports this new way of life and I believe the kind of personalized and immersive retail experience fostered on our platform will be the ‘new normal’ going forward,” Chandra said.
The 53-year-old previously founded Kaboodle, another online shopping website, and ran it from 2005 to 2010. It was acquired by Hearst in 2007. An engineer by training, Chandra was inspired to enter e-commerce by his childhood experiences with his grandfather, who ran a wholesale pharmaceutical store in Chandni Chowk, a market in Old Delhi, India.
“Each day, I explored the market, observing customers interacting with effervescent shop owners who were selling everything from clothes and spices to metalworks and more,” he writes in the S-1.
“In the decades since, the way people shop has changed dramatically, evolving from small, local retailers on main streets, to big department stores in malls, and ultimately to e-commerce. It seems that we have shifted towards more anonymized, commoditized, and transactional purchases than any time before in the rich history of human commerce … This led me to wonder — why couldn’t online shopping be as social, exciting, and personal as it was before e-commerce ‘disrupted’ retail?”
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Source:: Business Insider
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