Second-hand shopping site Poshmark hit a value of more than $7.1bn in its first day of trading

Second-hand shopping site Poshmark hit a value of more than $7.1bn in its first day of trading

access_time2021-01-20 08:00:54


 

Second-hand shopping site Poshmark hit a value of more than $7.1bn (£5.2bn) in its first day of trading, as investor demand sent its shares soaring.

 

The popularity of resale platforms is expected to rise, as shoppers grow more budget and environmentally conscious.


Poshmark also got a boost from the surge in online shopping due to the pandemic.


The firm, which raised about $277m in the Nasdaq listing, reported its first-ever quarterly profit this spring.



Its first day of stock market trading comes amid booming investor appetite for share offerings.


Holiday booking site Airbnb and food delivery firm DoorDash were among a wave of companies that listed last year.


Investors mobbed their initial public offerings, prompting share price and market value to surge far higher than expected.


Poshmark saw a similar phenomenon. It priced shares at $42 each, well above the initial target, and they started trading at $97.60 each, giving a value of about $7.1bn.


Founded in California in 2011, Poshmark has been backed by celebrities including Hollywood actor Ashton Kutcher and celebrity stylist-turned-designer Rachel Zoe.


Focused on used clothing and accessories, it provides a platform like eBay or Etsy that links buyers and sellers, mixing features from social media. It makes money by taking a 20% cut of each sale.

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