It seems as though investors around the world cannot pour their millions into resale companies fast enough. In first half of 2019 alone, luxury handbag reseller Rebag has raised $25 million (bringing its total funding to $52 million); Gen Z fashion marketplace Depop closed a $62 million Series C round of funding; and premium pre-owned fashion retailer Vestiaire Collective completed a $45 million round of funding. (The cash was seriously flowing in 2018, too, when the influx of venture capital helped the resale market go mainstream.)
The streetwear space has been particularly popular, with hype-driven retailers including Stadium Goods, Goat and Grailed all raising millions to help expand their businesses. Among the most interesting of the streetwear and sneaker-heavy resale concepts is StockX, often referred to as a "stock market of things." Founded in 2016, it features dynamic prices that fluctuate based on each item's perceived value, as well as a rigorous authentication process. In September 2018, the Detroit-based company raised $44 million to help it scale and expand its range of product categories, which currently includes sneakers, watches, handbags and clothing from brands like Supreme, Palace, Off-White and Fear of God.
But that was just the beginning: On Wednesday, StockX announced that it has closed a $110 million Series C funding round, which officially puts StockX's valuation at more than $1 billion. According to a release from the company, this new investment will be put toward international growth — the European and Asian markets, specifically — as well as further diversification of product categories. Additionally, StockX plans to build out its offline presence with brick-and-mortar stores in key markets. (The New York StockX permanent location is currently under construction on Lafayette Street, conveniently located on the same block as Supreme, and is slated for an opening later this year.)
The company also announced on Wednesday that Scott Cutler, who most recently served as the senior vice president of eBay, has been appointed as CEO. "StockX is revolutionizing e-commerce," Cutler said in a press statement. "That is why the company is one of the fastest growing technology companies in the world with a rapidly expanding global user base comprised of passionate enthusiasts; it is what sets StockX apart and why I welcome the opportunity to lead the team as we look to what’s next — extending the reach of the platform and broadening its offering to provide more users with access to an authentic, transparent, anonymous marketplace."
While StockX has plenty of competition in the resale space — both on and offline — this investment only further proves that the future of the market is extremely bright. With estimates that resale will be a $41 billion market by 2022 and will outpace fast fashion by 2027, as well as the millennial and Gen Z desire to shop more sustainably by purchasing items secondhand, there's clear potential for longterm growth and new, adaptable technologies — which, conveniently, is just what investors are searching for in viable opportunities.