Poshmark Announces Australia Expansion a Month After Its IPO
(Bloomberg) -- Poshmark Inc. is heading to Australia in the fashion marketplace operator’s first expansion since its January public offering.
The Redwood City, California-based company, which runs an online platform for selling second-hand apparel, currently is available only in the U.S. and Canada. But Poshmark is looking for “long-term growth through international expansion” and will start with English-speaking countries, according to a statement.
Australia was chosen as Poshmark’s first market outside of North America because it has a well-established thrift-shop culture, high rates of e-commerce adoption and environmentally conscious consumers, Chief Executive Officer Manish Chandra said in an interview.
Poshmark, which promotes its shopping as a way to form social ties, also wants to expand the merchandise categories that its users can buy and sell, and announced last week the addition of pet-related goods.
The company says its platform consists of 70 million users, about 43% of whom are active users. Along with competitors like ThredUp Inc. and RealReal Inc., Poshmark is growing quickly as consumers embrace new forms of e-commerce. Online marketplaces have gained popularity because they give shoppers access to premium brands for a discount. Use of secondhand apparel is also seen as more environmentally friendly, since the fabrication of new garments uses vast quantities of water and contaminates waterways.
Poshmark plans to launch in new countries “on a periodic basis,” Chandra said. “We believe that our platform has relevance in all of the major markets in the world.”
Poshmark shares were little changed in New York trading on Tuesday. The stock has gained about 86% since the company went public in January.
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