{"id":339415,"date":"2017-04-27T09:02:50","date_gmt":"2017-04-27T01:02:50","guid":{"rendered":"http:\/\/techcrunch.com\/?p=1482098"},"modified":"2017-04-27T09:02:50","modified_gmt":"2017-04-27T01:02:50","slug":"poshmark-cash-flow-positive-on-track-for-100-million-revenue","status":"publish","type":"post","link":"https:\/\/people.utm.my\/asmawisham\/poshmark-cash-flow-positive-on-track-for-100-million-revenue\/","title":{"rendered":"Poshmark cash flow positive, on track for $100 million revenue"},"content":{"rendered":"

<\/p>\n

Poshmark,<\/a> the fashion resale social network, is on track for $100 million in revenue this year, TechCrunch has learned.\u00a0We hear the company reached\u00a0$50 million in revenue last year, which means they are on pace to double in 2017.<\/p>\n

The company also recently became\u00a0cash flow positive, with profitability on an Ebitda\u00a0basis. This is a commonly used, but adjusted measurement\u00a0of profitability that excludes certain items\u00a0like taxes and one-time expenditures.<\/p>\n

We\u00a0were told that competitor ThredUp was also on track for over $100 million in revenue last year, but these companies are anomalies in an industry that has seen a lot of disappointment. Threadflip<\/a> shut down in 2016\u00a0and many others are struggling.<\/p>\n

Poshmark has a\u00a0business model that\u2019s different from the rest of the clothing resale startups.\u00a0It\u2019s not only a social network, but the company also\u00a0does not buy any inventory, meaning its costs are\u00a0lower.<\/p>\n

Instead, Poshmark makes money by taking a 20% cut from the sales. They are forecasting $500 million in gross merchandise volume, meaning the total dollar value of transactions on the platform for the year.<\/p>\n

It is a very competitive landscape and there are no guarantees that Poshmark\u2019s traction will continue. Their model also\u00a0requires more effort than some of the startups which let you ship your items in a box and be done with them.<\/p>\n

Yet with an army of 2.5 million sellers, Poshmark has done especially well with women\u00a0who like to sell clothing and accessories to their friends. And last year the company introduced men\u2019s and children\u2019s items and CEO Manish Chandra tells TechCrunch\u00a0these lines are \u201cscaling very rapidly.\u201d<\/p>\n

They introduced a significant app update on Wednesday, which allows sellers to act as virtual stylists. They\u2019re calling it the \u201cPosh Dressing Room,\u201d where\u00a0sellers can recommend items that suit the style of buyers. This will \u201ccreate a new form of discovery,\u201d said Chandra.<\/p>\n

The company has raised\u00a0over $65 million in the past six years\u00a0from notable investors including GGV Capital, Menlo Ventures and SV Angel.<\/p>\n

Last year they hired a CFO and shared that they hoped to IPO someday.\u00a0<\/a>We\u2019re \u201cstarting to think about the future\u201d said Chandra, but could not share a specific timeline.<\/p>\n

If Poshmark is able to keep up its momentum and reach this milestone, it would be unusual.\u00a0Few\u00a0e-commerce companies have made it to the public markets in recent years.<\/p>\n

Etsy debuted in 2015, but has struggled to maintain investor appetite. But then there are giants like Amazon which has had a phenomenal run in the public markets.<\/p>\n

For Poshmark, we are not predicting an IPO for this year, but possibly someday.<\/p>\n

Additional reporting by Matthew Lynley.\u00a0<\/em><\/p>\n

Featured Image: Flickr<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

\"\" Poshmark, the fashion resale social network, is on track for $100 million in revenue this year, TechCrunch has learned.\u00a0We hear the company reached\u00a0$50 million in revenue last year, which means they are on pace to double in 2017. The company also recently became\u00a0cash flow positive, with profitability on an Ebitda\u00a0basis. This is a commonly used, but adjusted measurement\u00a0of profitability… Read More<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

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