Stitch Fix has filed confidentially for an initial offering, specifying itself up for another big exam for the IPO market in the near future, sources tell TechCrunch.
While we dont know exactly when Stitch Fix will go public, we do know that a handful of companies are planning to go between Labor Day and Thanksgiving. Stitch Fix most recently hired its CFO, Paul Yee, in June so its possible that they are able to push this a little further out.This recognizes the official is starting the process ahead of the S-1 filing where the company was officially disclose its financials. Startups are allowed to file confidentially for IPOs under the JOBS act signed in 2012, allowing them to test the water prior to formally releasing their company inner workings.
Stitch Fix will also celebrate one of the big tests for modern e-commerce startups and their viability as public companies. Stitch Fix gathers information about your personal style and delivers articles of attire to your doorway, to make it possible to picking which ones to buy and which to return. Its an area thats become increasingly inhabited with competition, the largest of which is possibly Amazon with its recent launch of Prime Wardrobe .
A delegates of Stitch Fix declined to comment.
Stitch Fix forms part of a wave of subscription styling startups that have adopted the try-it-before-you-buy-it approach. Le Tote is also competitive in the space and Rent the Runway has been rolling out its Limitless subscription. Theres likewise MM. LaFleur for professional women, Dia& Co for plus size and Rocksbox, which is jewelry only. The modeling working for you for busy people who want to test out the most recent styles and simply keep their favorites.
But one challenge that Stitch Fix may face as a public company is it might be hard to predict revenue. Some subscription businesses, like we considered with Blue Apron, have fought with customer retention. The filing will additionally tell us if consumers are purchasing enough items to offset the customer acquisition costs.
Stitch Fix was founded out of CEO Katrina Lakes apartment in Massachusetts in 2011, initially focusing on womens garment. Part fashion startup, proportion tech startup, Stitch Fix has morphed into a massive e-commerce startup and is a big success tale for Lake in the midst of a lot of competitor. The last round Stitch Fix created was in June 2014, with a post-valuation of $309.31 million, according to data from PitchBook. The startup, which has raised $42.5 million from investors like Benchmark, was widely pegged for an IPO this year.
It will, indeed, be a test for Stitch Fix. After a hot start, customer IPOs have not done so well in public marketplaces as we pass the midpoint of 2017. Snap debuted with an aggressive popping but shares have since continues to hitting record lows. Blue Apron, too, has visualized a sharp deterioration following no amaze Amazons looming entry into meal kit delivery. Its not clear if investors will see whether Stitch Fix faces the same dilemma as Blue Apron with the risk of being Amazon. Still, Stitch Fix has a strong brand, and may fare better as a different kind of startup going public.
Most lately, Recode reported that Stitch Fixsfiling could be imminent, and in May Reuters reported that the startup tapped banks for it initial public offering. The company COO likewise left ahead of the IPO, according to that Recode report. TechCrunch can now confirm that the company has filed confidentially.
Stitch Fixs next steps will be to publicly release the information, and 15 days later begin the road depict, where it will pitch the company to investors ahead of its public debut.