Poshmark, the nine-year-old, Redwood City Ca.-based online marketplace for second-hand clothing, beauty, and home decor products, is set to start trading as a public company on the Nasdaq tomorrow after pricing 6.6 million shares higher than originally planned, according to Bloomberg.
Per its report, the company, which originally planned to sell shares at between $35 and $39 million, saw enough demand to rationalize a $42-per-share price — one that values the company at $3.5 billion on a fully diluted basis.
Given investors’ feverish embrace of all kinds of newly public consumer brands, including Airbnb, DoorDash and, to a more moderate degree, Wish (trading currently where it opened when it hit the market in mid-December), most anticipate smooth sailing for the company as it makes the move from private to publicly traded company.
What it has going for it: More than 70 million Poshmark users having sold more than 130 million items through the platform since its inception, according to the company.
Its numbers are moving in the right direction. Poshmark makes money off commissions on peer-to-peer sales and on products that it sells sold via wholesale and the company turned profitable last year for the first time Specifically, according to its S-1, …read more