StockX: $275 Million Series E Funding And $2.8 Billion Valuation

By Amit Chowdhry ● December 25, 2020
  • Detroit-based StockX recently announced that it raised $275 million in Series E funding at a valuation of $2.8 billion post-money. These are the details.

Detroit-based StockX recently announced that it raised $275 million in Series E funding at a valuation of $2.8 billion post-money. This new round of funding will be used for accelerating global expansion, product innovation, and category diversification for the e-commerce marketplace. StockX not only achieved breakeven in the third quarter, but it also surpassed $3 billion in lifetime gross merchandise value (GMV). And during 2020, StockX’s year-over-year revenue growth has accelerated, reaching over 75% in Q3 on over $100 million in quarterly GAAP revenue.

This round of funding was led by Tiger Global Management with new participation from Altimeter Capital, Sands Capital, and Whale Rock Capital Management. And the funding round marks the largest VC funding round in Michigan history and brings the total funds raised to $490 million.

StockX logged record-breaking growth in 2020. And as of the end of Q3, the company surpassed 13 million lifetime trades (StockX’s metric of transactions between buyers and sellers) — 50% of which were in the prior 12 months. And additionally during Q3, StockX saw an average of 25 million global visitors per month.

In under 5 years, StockX became one of the fastest-growing online marketplaces in the world, processing sales in more than 200 countries and territories. Due to the liquidity and diversity of its global marketplace, StockX saw non-US sell-side trades increase 260% in Q3 2020 compared to Q3 2019. And in November, the company opened authentication centers — operations hubs at which all products bought and sold on StockX are verified using a proprietary process — in Hong Kong and Toronto. The 2 international sites – along with the recent addition of an authentication center in Portland, Oregon – grew the company’s global network by 50%.

The StockX platform is used for sneakers, apparel, accessories, collectibles, and recently added electronics, a category that quickly become the second largest on the platform. And during Cyber weekend – more than one gaming console was traded every minute on StockX – with both the Xbox Series X and the PlayStation 5 ranking on its list of top 10 best-selling products. The company’s recent category expansion efforts made for a wide-ranging catalog — which includes more than 115,000 different products — and helped the platform attract a record number of first-time customers in 2020.

KEY QUOTES:

“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. 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.”

– StockX CEO Scott Cutler

“The power of the online marketplace is growing rapidly — along with our reliance on digital experiences. The StockX team has demonstrated the ability to build a trusted and customer-centric experience for people buying and selling online, and we are excited to partner with them as they continue to innovate a tech-forward model to deliver much-needed authenticity and price transparency in this market.”

– Griffin Schroeder, Partner, Tiger Global