Here’s Why Stitch Fix’s IPO Is The Tech Exit You Should Actually Care About
Last Friday, we learned that e-commerce startup Stitch Fix has reportedly confidentially filed for an IPO. With CEO Katrina Lake at the helm, Stitch Fix’s public offering will be the rare female-led exit, and a significant one at that: The company is seeking a valuation of $3 billion to $4 billion in what could be one of the biggest e-commerce IPOs since Etsy went public two years ago. But 2017 has seen its share of lackluster IPOs, namely Snap and Blue Apron, so the news that Stitch Fix wants to go public might have you scratching your head. The five-year-old company’s shtick is to send users a personalized box each month—a “Fix,” if you will—filled with five items of clothing, shoes, or accessories that they can either return or keep. The boxes are curated by way of both algorithms—Stitch Fix has a formidable data team—and human stylists. Customers are charged a styling fee of $20 for each box, which goes toward their purchases if they choose to keep any of the items; they get 25% off if they opt to buy the entire box. Of course, subscription e-commerce is a crowded market. Stitch Fix counts among its competitors Rent the Runway, Le Tote, and MM.LaFleur, though each has a slightly different model or clientele. A service like Stitch Fix offers more flexibility, allowing its customers to schedule boxes as frequently or infrequently as they would like, which means they’re not locked into a month-to-month subscription. Read more at Fast Company.
