After 15 years in business, online retailer Revolve is said to be readying an initial public offering.
The millennial favorite known for aspirational, contemporary fashion, is in the process of meeting with investors, according to The Wall Street Journal. The IPO is expected to take place later this year, according to unnamed sources, who also pegged the valuation at more than $1 billion.
The site reportedly garners more than 40 million page visits a month and courts more than 1.4 million fashion fans via email. It also has 2.2 million followers on Instagram, more than 500,000 on Facebook and 37,000 on Twitter.
The company’ social following has been bolstered by its rabid influencer baiting. (The retailer dressed more than 400 influencers during the 2017 Coachella festival.) Revolve even hosted an entire awards show last year in which it crowned the most Instafamous faces with titles like YouTube Channel of the Year and #COUPLEGOALS of the Year.
“Malls and department stores aren’t as relevant to the consumer anymore, and the ecosystem that served them is dying. The new generation of retailers and fashion brands is digital and social, operating in a faster, more streamlined way,” co-founder Michael Mente said in an interview in April.
While he added that Revolve may consider putting down physical roots at some point, if it happens, that would still be a ways off. The retailer does have one door, though it’s not a store, exactly. The Revolve Social Club opened two years ago as an invitation-only destination where influencers, stylists and its best customers can book private shopping sprees.
If the retailer does file an IPO, comparisons are likely to be made to Stitch Fix, which filed last year. That company reportedly earned more than $1 billion off a $42 million venture investment leading up to going public, according to founder and CEO Katrina Lake. Though the company has since rallied, the IPO price was seen as a disappointment by some. Lake said the slow start was due to the company’s unique model, which sends subscribers five items a month, sight unseen, using a combination of data analytics and human stylists.
“Stitch Fix is an unusual company. We turn our inventory really fast. We’re really capital efficient. In some ways, we can look like a retailer. In other ways, we look more like a technology company,” Lake explained at the recent Code conference. “There weren’t perfect comps for the business.”
How Revolve fairs with an IPO may hinge on whether or not investors believe influencers have legs.