The RealReal embarked on a path to sell up to $70 million in new shares. In case you’re not familiar with The RealReal, is a leading online retailer for authenticated luxury consignment. If the San Francisco-based Company manages to rise the entire amount, its valuation will climb up to $1.06 billion earning the status of the newest e-commerce unicorn. However, the filing brought to light by the Prime Unicorn Index does not give any guarantees on whether the company will sell the full amount of authorized shares or not. Furthermore, there has been no clarification on the same from The RealReal.
With Julie Wainwright as Founder and CEO, the company has made tremendous progress in raising capital. She successfully closed $288 million from private equity and venture capital backers including Sandbridge Capital, Great Hill Partners, Industry Ventures and more. In 2018, The RealReal successful closed a Series G financing of $115 million making the company’s valuation to go up to $745 million.
The RealReal has continued to open new physical spaces to increase its presence. It opened additional e-commerce fulfillment centers to meet the ever-increasing demand for the supply of second-hand luxury items. The company controls and owns eight luxury consignment offices where customers get free valuations of their items.
According to Julie Wainwright, the company is pondering on the decision of going public and it has an intention of going public at some point. It reveals its intention of going public at a time the company’s competitors including ThredUp and Poshmark are making incredible progress toward gaining a competitive edge in the space.
The RealReal is on the verge to gain the unicorn status making it the latest female-founded companies to gain the status. On the other hand, Glossier increased its valuation to about $1.2 billion after closing a $100 million round and other capitals. The RealReal focuses on high-end resale items for men, women, as well as the home. With the new wave of opening physical stores, the company is looking to increase its presence extensively. According to Julie Wainwright, the success they have been able to achieve was as a result of focusing on the high-end market, and building trust by selling inspected as well as authenticated products.