With the resale market being as hot as ever, no doubt due partly to the increasing role that the internet is playing, the U.S.-based Goat Group closed an additional Series E funding round $100 million, saying that it was intended to accelerate its development across product categories and geographies.
According to The Wall Street Journal, the latest investment, which was made by D1 Capital Partners, takes Goat’s valuation up to $1.75 billion, up from a previous $550 million valuation made in connection with a $100 million investment made into the platform by Foot Locker early last year. At that time, Forbes evaluated the size of the secondary sneaker market at $1 billion.
The latest equity increase takes the money raised so far by Goat up to $300 million. Founded in 2015, the company acts as an online platform for the resale of sneakers, apparel and accessories. It also has a physical presence at 13 locations in the U.S., Asia and Europe, including distribution and authentication centers.
Goat boasts a database of 30 million members in 170 countries. On top of facilitating buying and selling between “sneakerheads,” Goat has partnered with more than 350 brands that have chosen to sell their products directly on the goat.com marketplace.
Before the Goat Group, which also includes the former Flight Club, another major online reseller founded four years ago, StockX, reached a valuation of more than $1 billion in June 2019 when one of its c-founders, Josh Luber, left it to pursue interests outside of the company. His position as the company’s chief executive was taken over at the time by Scott Cutler, a former top manager of eBay.
It was announced earlier this month that Luber had left the company completely, after working together with Cutler on a seamless transition, to return to his “entrepreneurial roots,” indicating that the former IBM official is working on a new, innovative start-up. His profile on Linkedin says that he is doing this in “stealth mode.”
Two months earlier, in July, StockX had said that May and June had been the highest-volume months in the company’s history