Online Styling Service Stitch Fix Reportedly Eyeing IPO
This story has been updated with a statement from Stitch Fix.
Online styling company Stitch Fix is considering an initial public offering, Bloomberg reports. The startup’s executives have reportedly met with bankers to have preliminary discussions about a potential deal.
A Stitch Fix spokeswoman said the company “has neither turned down late-stage funding from interested investors nor will our Board of Directors be meeting next month to decide on plans for an IPO.”
Although founder and CEO Katrina Lake says the company hasn’t hit $1 billion in revenue yet, the company has become an e-commerce force. Stitch Fix has raised about $46 million in venture capital from backers including Benchmark Capital and Lightspeed Venture Partners. The company’s most recent valuation was $300 million, according to Re/code.
Related: Katrina Lake: Fortune’s 40 Under 40
Founded in 2011, the fashion e-retailer offers a subscription service of regular “fixes,” or curated boxes of clothing that are compiled using mix of human stylists and data analytics. For a $20 styling fee, Stitch Fix sends its customers five clothing and accessory items each month that they can decide to buy or return.
Stitch Fix has been ruthless about going after its competitors. It recently expanded into the menswear market to compete head to head with existing men’s styling services like Trunk Club and Bombfell. Last month, it announced the launch of Stitch Fix Plus, a new offering that will serve women sizes 14 and above. This move targets Sequoia-backed startup Dia&Co, which is a clothing subscription business for plus-size women.
Keaton Row, an online styling service similar to Stitch Fix, struggled to make its business model work and shut down its operations this week. (Fortune parent Time Inc. is an investor in Keaton Row.)
With annual sales at more than $500 million, Lake says she is “really excited about the growth that we’ve seen.”