If StockX has plans to hold an IPO, it now has a person at the helm with experience in pubic markets.
StockX, the Detroit-based e-commerce marketplace that started out as an exchange for limited-edition sneakers, in June brought on eBay alum Scott Cutler to lead the privately held company as CEO. In the same month, the company raised $110 million in a Series C funding round to give it a $1 billion valuation.
The resale platform, which has expanded into other high-end products, was launched in 2016 by Josh Luber and billionaire Quicken Loans CEO Dan Gilbert.
“We have world-class investors, including Dan, that are in this and I think wouldn’t that be great if we ended up with that [public] outcome, that’s certainly our objective as a company,” Cutler, who previously was a senior vice president at eBay and president of StubHub, a unit of eBay, told CNBC’s Jim Cramer in a “Mad Money” interview Monday. “But we’re going after a global opportunity with consumers around the world and we’re super excited about this innovation in commerce.”
StockX and its 800 employees across the United States and Europe serve customers in 170 countries, according to Cutler. The e-retailer is one of the many new companies that are helping change the direction of the industry.
Before eBay, Cutler was an executive vice president at the New York Stock Exchange for nearly a decade. He succeeded co-founder Luber as chief when he joined StockX earlier this year. Intrigued by its business model, Cutler said he first became acquainted with StockX in its infant days and got connected with Luber via LinkedIn.
“I saw the idea and I thought it was just transformational, the combination of all of these things together in this company,” he told Cramer, “and then who would have known a few years later that I would join and have the opportunity to run it in partnership with the founders.”
StockX already has its mind on the IPO process, though not the kind that stock investors can get their hand on. Last week, the company rolled out a collectibles initiative, its fifth product category, in collaboration with Adidas dubbed “The adidas Campus 80s StockX IPO.”
Through the partnership, three designers from across the globe are tasked to design, create and produce a total of three “unique sneakers” in 10 days, Cutler said. StockX then debut 330 pairs of each sneaker on its online market where customers place bids over the course of three days.
There were 10,000 bids placed with 20% coming from outside of the United States, the CEO said.
“This is the first time where a brand comes direct into the marketplace and allows the consumer to dictate the price that they’re willing to pay for these rare, one-of-a-kind sneakers,” Cutler said. “When it came down to it, when you talked about the average clearing price was a little over $200 across all three, and 90% of the bidders paid less than what they bid on the sneakers.”
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Correction: A previous version of this story misidentified StockX co-founder Josh Luber.