Stitch Fix Goes Public; Raises $120 Million

Mindy Sparks
November 18, 2017

Stitch Fix works with more than 600 women's fashion brands, including Joie and Citizens for Humanity, and more than 30 men's brands, including Scotch & Soda The San Francisco-based Stitch Fix is expected to start trading on the NASDAQ stock exchange under the ticker SFIX.

Stitch Fix, the six-year-old personal styling service, is planning to go public this week at a valuation as high as $2 billion. The price was lower than the $18 to $20 range that the company originally expected, as The Wall Street Journal reported was likely earlier Thursday.

The company previously raised $42 million from investors including Benchmark and Baseline Ventures. Stitch Fix is selling 8 million shares in the offering, lower than the initial estimate of 10 million shares, while founder and Chief Executive Katrina Lake is selling 1 million shares; underwriters, led by Goldman Sachs and JP Morgan, have access to an additional 1.2 million shares. After its SEC filing, the company was hailed as an example of responsible management and growth of a startup.

Stitch Fix Goes Public; Raises $120 Million
Stitch Fix Goes Public; Raises $120 Million

The underwhelming IPO highlights the challenges e-commerce companies face going public in the wake of poor performances from Snap and Blue Apron.

"I'm thrilled to embark on this next chapter and I'm immensely grateful to everyone who believed in us over the years", Lake wrote on Twitter after the IPO.

Other reports by Iphone Fresh

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