US-based Poshmark, Indian American-founded online marketplace, recently filed to raise US $ 100 million in an initial public offering (IPO) of its Class A common stock.
Poshmark connects buyers and sellers of apparels and allied products.
It has received at least US $ 156 million from investors including Mayfield Fund, GGV Capital, Menlo Ventures, Inventus Capital and Anderson Investments.
In 2019, its active user base spent an average of 27 minutes per day on the site and as of 30 September 2020, Poshmark had 31.7 million active sellers.
As of 30 September 2020, Poshmark had US $ 216.6 million in cash and US $ 210.5 million in total liabilities, it notes. The free cash flow during the 12 months ended 30 September 2020 was US $ 48.8 million.
Poshmark intends to raise US $ 100 million in gross proceeds from an IPO of its Class A common stock, although the final figure may differ.
The company will use the net proceeds from the IPO to increase its financial flexibility, create a public market for its Class A common stock and enable access to the public equity markets for stockholders and the management.
The site acts as a form of social commerce, encouraging users to connect with each other in a safe manner for the sale of new and used apparels, accessories and other products.
Manish Chandra, President and CEO of the Poshmark, was previously co-founder of Kaboodle – an online shopping website acquired by Hearst Communications.
