StockX today announced its Series E funding led by Tiger Global. The $275 million funding round values the company at $2.8 billion at a post-money valuation. The company intends to use the cash to accelerate global expansion and product development, and to expand StockX's categories. Rumors are swirling that this financing will allow the company to offer an initial public offering in 2021.
Tiger Global Management led the round with participation from Altimeter Capital, Sands Capital and Whale Rock Capital Management.
“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,” said StockX CEO Scott Cutler in a released statement. “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.”
Headquartered in downtown Detroit, Michigan, the raise marks the largest VC funding round in Michigan history. This round brings StockX's total amount raised to $490 million.
StockX is seeing blockbuster growth. Since launching in 2016, the company recorded sales in 200 countries through 13 million transactions -- 50% of those coming within the last 12 months. In June the company surpassed $2.5 billion in lifetime gross merchandise value. International growth is quickly growing, too, with Q3 2020 non-U.S. trades increasing 260% over 2019 levels.
During the most recent quarter, the company averaged 25 million visitors per month.
Just prior to the COVID-19 shutdown, CEO Cutler said the impending virus was looking to be great for his company. At the time he spoke about how having facilities in different regions would allow the company to better navigate shutdowns. In April, a few weeks later, StockX laid off 100 people at the height of the shutdown. Shortly after, the company's outlook changed, as the results speak for themselves.
The company opened new authentication facilities in 2020 resulting in a 50% increase of the company's global footprint. Earlier in the year, the company opened an authentication facility in Portland, Oregon. Like other authentication centers, this location is a go-between buyers and sellers where StockX employees authenticate the products purchased and sold on the marketplace. Last month, the company opened similar facilities in Toronto and Hong Kong as it expands into key international markets.
StockX is targeting the Asian-Pacific market. The company opened an office in Tokyo in 2019 and a localized experience in 2020. Last month, StockX stated sell-side transactions across the region increased 500% over 2019 levels and up 1,000% in Hong Kong.
StockX originally launched as a marketplace for sneakers, where the value of the products are determined by supply and demand. Now, in 2020, the company offers the same pricing system but in more categories, including streetwear, luxury good, collectables and even hot electronics like the new PS5 and Xbox Series X. The company expects to keep expanding, too.