Poshmark saw its share prices skyrocket more than 140 per cent yesterday following its blockbuster initial public offering.
The online clothing resale marketplace saw its stock trade at $100 per share as it made its market debut yesterday.
This was more than double the $42 per share it had priced its IPO at a day earlier giving it a valuation of over $3.5 billion, almost triple its 2019 valuation of $1.25 billion.
The fashion resale brand, launched in 2011, has around 32 million active users who spend an average of 27 minutes per day on the platform according to its offering prospectus.
In the nine months to September 30, Poshmark’s revenues jumped 28 per cent to $193 million.
Compared to rival platforms like Ebay and Depop, Poshmark takes a fairly significant portion of user sales fees, syphoning 20 per cent of sales fees over $15 and or a flat fee of $2.95 for smaller sales.
“In 2020, we saw a pretty big stress test of our social marketplace,” chief executive Manish Chandra said in an interview.
“As the demand shifted from buying work clothes and dress clothes to sweats and tie-dye, the marketplace quickly shifted in that direction.”
Poshmark has been one of the few retail success stories of the pandemic as users stuck at home, many recently made redundant, turned to the platform for an alternative source of income.