StockX, a fast-growing Web destination for traders of hard-to-find sneakers, is looking for a whopping $2.5 billion valuation as it prepares for a fresh round of private funding, according to the New York Post. The proposed valuation is more than double what StockX rang up in June 2019, when investors valued the company at $1 billion as they handed it more than $100 million in proceeds. The upcoming round is expected to be the last private fundraising before an anticipated initial public offering in mid-2021, according to sources close to the situation.
Hip-hop icon and Detroit native Marshall Mathers (a.k.a., Eminem) has been an early backer starting with them in 2016. At the time of his investment he said.” “Sneakers have always been a huge interest of mine, for at least as long as I’ve been rapping, and I’m proud of the fact that I’ve had so many collaborations with Nike and Jordan Brand,” said Mathers. “I really like the fact that sneakers are a big part of what StockX is doing. When I found out that they happen to be doing it from downtown Detroit, it made even more sense to get involved.”
StockX has boasts other celebrity investors that include Mark Wahlberg and Karlie Kloss. Dan Gilbert, the billionaire founder of Quicken Loans and owner of the Cleveland Cavaliers, is among StockX’s co-founders.
The Detroit-area company reportedly charges a commission ranging between 9 and 14 percent for pricey shoes such as Nike Air Jordans and Adidas Yeezys. The fees can rise quickly given the increasingly lofty prices of rare sneakers. StockX got a boost this year from COVID-19 as lockdowns have shuttered traditional sneaker outlets. Last week, Forbes reported that StockX’s business surged 500 percent from a year earlier during the third quarter. The company recently opened three new “authentication centers,” where sellers ship their goods to be inspected before they’re delivered to buyers. One of them is located in Hong Kong as StockX eyes an expansion into lucrative Asian markets.