Goldman Sachs Investment Partners Leads $81 Million Series E Investment in Secondhand Apparel Marketplace thredUP

thredUP has reinvented the experience of buying and selling
secondhand clothing and will use the financing to rapidly expand its
pioneering online platform to reach millions more Americans

SAN FRANCISCO–(BUSINESS WIRE)–thredUP,
the nation’s leading online marketplace for like-new women’s and kids’
clothing
, today announced that Goldman Sachs Investment Partners
(GSIP) has led a $81 million Series E investment in the company. The
financing will enable thredUP to continue its rapid growth and scale its
operations and distribution network to meet customer demand. With the
growing reach of its marketplace, thredUP is fundamentally reinventing
what it means to buy and sell secondhand
clothing
on the Internet.

“We founded thredUP to make it incredibly convenient for consumers to
clean out their closets and shop for quality secondhand clothes. We saw
a huge opportunity to leverage Internet penetration and the growing
acceptance of buying and selling online to bring a delightful,
frictionless secondhand experience to the masses,” said James Reinhart,
CEO and co-founder of thredUP. “There was a time we bought ‘used cars’
rather than ‘certified pre-owned cars,’ and ‘used electronics’ instead
of ‘factory refurbished electronics’. A similar trend is emerging in the
apparel space, and thredUP is setting the standard for what will be an
enormous category in the future. Consumer adoption is hitting an
inflection point right now,” added Reinhart.

thredUP has seen impressive growth in the last year with more than 1.8
million people visiting the site in August 2015, up from just 700,000
one year ago. By the end of 2016, the company expects to process more
than two million pieces of clothing each month. thredUP recently opened
a 136,000 square foot facility in Pennsylvania and by the end of next
year will open two more high-throughput facilities and will hire an
additional 1,000 employees. This expanded network will ensure that
thredUP can provide high-quality service to millions more customers.

“We’re excited to partner with thredUP, a team revolutionizing the way
we think about the secondhand clothing category. Our industry research
revealed a huge opportunity to change consumer behavior around both
shopping and selling secondhand apparel,” said Ian Friedman, co-head of
GSIP Private Investments who will join thredUP’s Board of Directors.
“While most brand-oriented consumers have historically held a negative
bias toward purchasing secondhand clothing, thredUP is proving it can
reverse that perception. We found that over half of their customers had
not purchased pre-owned clothing in the year prior to becoming a thredUP
customer, highlighting the potential for market expansion.”

thredUP has reimagined a secondhand shopping experience in which sifting
through racks of clothing or paging through individual online listings
is a thing of the past. Customers have access to hundreds of thousands
of carefully inspected women’s and kids’ items every day, at prices up
to 90 percent off retail. Each garment purchased comes certified by
thredUP and backed by great customer service. thredUP members sell their
clothes without ever leaving home by filling a pre-paid, pre-addressed Clean
Out Bag
with clothing, shoes and handbags, and giving it to their
mail carrier. When the Bag reaches a thredUP processing center,
merchandisers photograph, itemize, list and sell the like-new items,
then ship them to the buyer. thredUP accepts over 25,000 brands and
sellers earn cash for the vast majority of their items as soon as they
are listed. Luxury brands are sold on consignment where thredUP pays an
industry-leading 75% of the resale price to the consignor when their
item sells.

Existing thredUP investors Trinity Ventures, Redpoint Ventures, Highland
Capital Partners and Upfront Ventures also participated in the Series E
financing. thredUP has raised more than $125 million to date.

About thredUP

thredUP
is the leading online marketplace to buy and sell like-new women’s and
kids’ clothing. The company publishes the Annual
Resale Report
, and pioneered the Clean
Out Bag
, the most convenient way for consumers to sell clothes
they’re no longer wearing. It accepts clothing from more than 25,000
women’s and kids’ brands, and resells the items for up to 90 percent off
the original retail price. Headquartered in downtown San Francisco and
backed by world-class investors, thredUP is reinventing the secondhand
clothing industry and inspiring a new generation of consumers to think
secondhand first. Learn more at www.thredUP.com.

Contacts

thredUP
Farrell Klein, 415-617-5910
farrell@thredUP.com