Poshmark’s valuation has been raised to $7 billion with the company’s stock soaring by more than 140 percent since the company filed for its IPO on Wednesday.
The company’s shares opened at $97.5 on Nasdaq and closed at $101.5 at the end of the day — more than double the initial public offering (IPO) price of $42 per share. Overall, the company raised $277.2 million in its IPO.
The successful market debut of the fashion resale platform reflects investors’ confidence in continued demand for online shopping, even with the COVID-19 vaccination underway.
“Our business… was put to a severe test in the last 12 months, and it’s really come out as thriving,” founder and CEO Manish Chandra told Reuters. “The trends that we’ve focused on for a long time have been accelerating… So we felt like it was the right time to introduce Poshmark to the world of public investors.”
Founded in 2011, the online marketplace today counts 70 million registered users in the U.S. and Canada.
“Poshmark has become not just an ecommerce site, but also a community where you can build a style graph and find inspirations. There’s a lot of sharing and community building that’s unique to Poshmark,” said Hans Tung, a partner at GGV Capital and an early investor in Poshmark.
Poshmark has also been backed by several other high profile investors, including actor Ashton Kutcher and celebrity stylist turned designer Rachel Zoe.
The company reported a net income of $20.9 million in the first nine months of 2020, becoming profitable as more consumers dug into their closets and bought and resold items online. This compared to a net loss of $33.9 million during the same period in 2019.