The Real Real Generates $300 Million In IPO

The clothing and handbag resale market has grown significantly over the past several years, with there being a variety of companies established to take advantage of the niche. One firm that’s been riding this wave has been The RealReal, which has recently seen a successful IPO. Debuting on the New York Stock Exchange for $20 per share, the company saw a 40% increase by the close of the business day.

Based on cnn.com, Real Real is an online marketplace that’s become increasingly well known for buying and reselling second-hand and authenticated luxury clothes and handbags. Some of the more notable brands that the firm carries are Gucci, Christian Louboutin, Chanel, and others.

As a result of the successful IPO, the firm has raised $300 million for its operations, with this being a sign of the overall market’s health. Despite being only a few years old, Real Real has attempted to differentiate itself from competitors in a variety of ways.

The most notable of these is that it offers customers a consultation service for regular customers who want to part with their goods. Alongside this is the fact that it has a team of horologists  and gemologists to inspect and authenticate each of the products that are sent into the company.

Real Real currently generates its revenue through receiving a percentage of sales through its website. The organization also has three stores spread across Los Angeles and New York, with the firm reportedly planning on opening more in the coming months.

Despite the company’s growth so far, it has yet to make a profit and posted a $76 million loss in the last fiscal year. However, the recent IPO should allow the company to expand many of its operations, which should lead to reduced margins and a larger profit over time.

Much of this investment could be focused on acquiring a larger userbase, which has already proved to generate a significant amount of revenues for the company. According to The RealReal, the average order from each customer came in at $446. As a result, increasing the marketplace’s consumers should significantly expand its profitability. To see more about Real Real you can visit cbsnews.com

https://techcrunch.com/2019/04/23/luxury-consignment-e-tailer-the-realreal-to-enter-the-unicorn-club-with-new-funding/

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