Every company wants to become one of the next big things, and The RealReal looks set to do just that. With the recent authorization of the sale of up to $70 million in new shares, it’s set to reach a valuation of $1.06 billion. Not too bad for an e-commerce platform that’s only a few years old. Founded by Julie Wainwright, the online retailer has been growing steadily over the past few years. Much of this has been driven by investments from venture capital and private equity backers across the country; chief among these has been Great Hill Partners, Sandbridge Capital and more.
This isn’t the only funding round that The RealReal has gone through in recent months; it closed a Series G financing in July 2018. During that round, the company raised $115 million through a variety of different investors. This resulted in the company being valued at over $700 million, with a significant amount of growth since then. The company was founded in 2011 with a brick-and-mortar store, as well as a large online presence. Specializing in second-hand luxury items, the business has attracted a significant customer base, which has helped it to grow quite quickly.
During this time, TheRealReal has branched out into a variety of different locations. With its headquarters in San Franciso, it’s expanded to include eight luxury consignment offices. While it focuses mainly on the sale of second-hand luxury items, these consignment offices also work as an appraisal center for potential purchases. While the retailer was initially established as a storefront with a minimal amount of an online presence, this has changed drastically over the past few years, with e-commerce quickly becoming its primary revenue source. This, in turn, has resulted in a significant amount of growth for the company.
The growth that the e-commerce store has experienced recently shows no signs of slowing down, especially with the potential investment that this funding round will entail. Speaking in 2017, founder Julie Wainwright noted that the company’s focus was to go public eventually. With the new funding round, it’s been noted that a potential IPO could be filed as early as 2020.
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