ThredUp is one of the many companies who are trying to form a brand new ecommerce category, ‘Second hand Clothing’. The company has raised $81 million investment led by Goldman Sachs Investment Partners at valuation around $500 million. ThredUp has in total raised more than $125 million through various investors like Upfront Ventures, Trinity Ventures, Highland Capital Partners and Redpoint Ventures. James Reinhart, CEO of ThredUp said the money would be used to buy two new warehouses. He believes he has a company which people should be aware of thus plans to invest the money raised through investors in advertising.
The annual income of the customer base of ThreadUp is more than $100,000. TheadUp’s goal is to change the negative perception of brand conscious customers towards second hand clothing. Twice, ShopHers, Poshmark, Threadflip and The RealReal are some of the other names in the used clothing industry. Customers are asked to fill a bag supplied by ThreadUp with used clothes that are in excellent wearable condition. The company uses only about 50% of the clothing after strictly inspecting it, mostly favoring high end brands like J. Crew and Calvin Klein. The customers are given immediate Threadup shopping credit in exchange for their clothes or cash via PayPal after 14 days.