Credit & Capital

Online Clothing Reseller ThredUp Gets $175 Million Infusion

The company plans to expand its platform to offer resale services to retailers, and recently announced partnerships with Macy’s and J.C. Penney.
Lauren MuskettAugust 21, 2019

The online resale marketplace ThredUp received $175 million in venture capital funding, bringing the total capital it has raised so far to $300 million.

The San Francisco-based company raised a previously undisclosed $75 million last year. It did not give revenue information.

ThredUp said it will use the funds to build a new resale platform that allows the retailers it partners with to use its infrastructure to sell the company’s merchandise in their stores. It also plans to expand the number of distribution centers from five to six.

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The company said it processes 100,000 articles of clothing per day at the centers. It said it will have processed 100 million used items by the end of the year. Clothes on the ThredUp site are sold at up to 90% off the original retail price.

So far, the funding has largely been used to develop its new resale-as-a-service platform.

“We can do what we do best, which is resale, and they can do what they do best, which is engaging the customer in a physical format,” chief executive officer James Reinhart said in an interview.

The company has relied primarily Facebook and Google for advertising but will shift now to do more advertising on television and outside the home.

In an interview with Reuters, Reinhart said the company is in conversations with “dozens of retailers” about the apparel resale market, estimated to be worth $24 billion.

Last week, J.C. Penney announced it would be offering secondhand women’s clothing and handbags from ThredUp at 30 of its stores. Macy’s said it would offer ThredUp merchandise at 40 stores through a pilot program.

Downloads of the ThredUp app were up 71% from January to July of 2019 compared with the same period last year, according to data from SimilarWeb. The app had 19,000 daily active users last month.

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