Detroit-based StockX today announced it has raised $275 million in a Series E funding round that brings the e-commerce platform’s value 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 participation from Altimeter Capital, Sands Capital, and Whale Rock Capital Management, the raise marks the largest venture capital funding round in Michigan history and brings the total funds raised to $490 million.
The new investors bring experience in the technology, consumer, and e-commerce sectors, having invested in leading platforms including 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 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,” says Scott Cutler, CEO of StockX. “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 also announced that it not only broke even in the third quarter of 2020, but also surpassed $3 billion in lifetime gross merchandise value. During 2020, StockX’s year-over-year revenue growth has accelerated, reaching more than 75 percent in the third quarter on over $100 million in quarterly GAAP revenue.
The company reports that it has logged record-breaking growth in 2020. As of the end of the third quarter, it surpassed 13 million lifetime trades (StockX’s metric of transactions between buyers and sellers), 50 percent of which were in the prior 12 months. Also during the third quarter, StockX saw an average of 25 million global visitors per month.
“The power of the online marketplace is growing rapidly — along with our reliance on digital experiences,” says Griffin Schroeder, a partner, at Tiger Global. “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.”
In fewer than five years, StockX says it has become one of the fastest-growing online marketplaces in the world, processing sales in more than 200 countries and territories. Thanks to the liquidity and diversity of its global marketplace, StockX saw non-U.S. sell-side trades increase 260 percent in the third quarter of 2020 compared to year-ago figures.
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, furthering its ability to serve buyers and sellers globally. The two international sites along with the recent addition of an authentication center in Portland, Ore., grew the company’s global network by 50 percent.
The company also has accelerated the expansion of the categories in which it deals. StockX features sneakers, apparel, accessories, collectibles, and recently added electronics, a category that has quickly become the second largest on the platform.
Throughout 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 catalog now includes more than 115,000 different products.