StockX in Detroit Raises $275M in Series E Funding Round
StockX raised $ 275 million in a Series E funding round, bringing the value of the e-commerce platform to $ 2.8 billion. // Photo courtesy of StockX
Detroit-based StockX announced today that it has raised $ 275 million in a Series E funding round, bringing the value of the e-commerce platform to $ 2.8 billion.
The new funds will be used to accelerate the company’s global expansion, product innovation and category diversification for the online marketplace.
Led by Tiger Global Management with new stakes from Altimeter Capital, Sands Capital and Whale Rock Capital Management, the increase marks the largest venture capital financing round in Michigan’s history, bringing total funds raised to $ 490 million.
The new investors bring technology, consumer and e-commerce experience with them and have invested in leading platforms such as Amazon, Netflix, Salesforce, Shopify, Spotify and Uber.
Other StockX investors include Battery Ventures, DST Global, Detroit Venture Partners, Galaxy Interactive, GGV Capital, GV, General Atlantic and Marcy Venture Partners (co-founded by Shawn “Jay-Z” Carter).
“The quality of the investors who are joining us is a clear signal that the market is realizing that e-commerce offers an incredible opportunity for current cultural products and StockX is best positioned to meet consumer demand for these products satisfied, ”said Scott Cutler, CEO of StockX. “I’m very excited to welcome our new partners to the team. Their collective expertise will be invaluable as we build on last year’s momentum and drive growth to cement StockX’s position as a global leader . “
StockX also announced that in addition to breaking even in the third quarter of 2020, it also exceeded its lifetime gross merchandise value of $ 3 billion. In 2020, StockX revenue growth accelerated year over year, surpassing 75 percent on quarterly GAAP revenue of over $ 100 million in the third quarter.
The company claims to have seen record growth in 2020. At the end of the third quarter, 13 million lifetime trades (StockX measure for transactions between buyers and sellers) had been exceeded, of which 50 percent were in the previous 12 months. In the third quarter, StockX recorded an average of 25 million monthly visitors worldwide.
“The power of the online market is growing rapidly – along with our dependence on digital experiences,” says Griffin Schroeder, partner at Tiger Global. “The StockX team has demonstrated the ability to create a trustworthy and customer-centric experience for people buying and selling online and we look forward to working with them as they continue to create a technologically advanced model to deliver the much-needed authenticity and the price to deliver transparency in this market. “
In less than five years, StockX has grown to become one of the fastest growing online marketplaces in the world, serving sales in more than 200 countries and territories. Thanks to the liquidity and diversity of its global market, StockX saw sell-side trades outside of the US increase 260 percent year over year in the third quarter of 2020.
In November, the company opened authentication centers in Hong Kong and Toronto – operations hubs where all products bought and sold on StockX are verified through a proprietary process – strengthening its ability to serve buyers and sellers around the world. The two international locations and the recently added authentication center in Portland, Oregon have expanded the company’s global network by 50 percent.
The company has also accelerated the expansion of the categories in which it operates. StockX offers sneakers, apparel, accessories, collectibles, and recently added electronics, a category that has quickly grown to become the second largest on the platform.
During Cyber Weekend, more than one game console was traded on StockX every minute, with both the Xbox Series X and PlayStation 5 making the top 10 best-selling lists. The company’s catalog now includes more than 115,000 different products.