Brooklyn-based crafts website Etsy has filed for $100 million IPO. The popular online marketplace for handmade goods, has indicated that the funds will be used for future expansions and general corporate purposes. Etsy offers a platform for artists to sell anything handmade and takes a percentage from the revenue generated.
According to the filing, the company registered 56 percent increase in revenue at $196 million. Compared to 2013 ($796,000), Etsy reported a higher loss at $15.2 million in 2014.
CEO Chad Dickerson took over the control of Etsy in 2011 from founder Rob Kalin. The company charges 20 cents for listing a single item on its platform. Etsy claims to have 1.4 million active users on its platform. Over 50 percent revenue comes from the listing fee. Rest of the revenue is generated by promoted listings, shipping, labels and direct checkout option.
In October 2013, Etsy allowed sellers to outsource the manufacturing of their products. The sellers on Etsy platform are concerned that it could increase fee in order to be profitable, after the stock market listing.
In the SEC filing, Etsy said, "We expect that our operating expenses will increase substantially as we hire additional employees, increase our marketing efforts, expand our operations and continue to invest in the development of our platform, including new services and features for our members. We may not achieve or maintain profitability in the future.”
Etsy CEO Chad Dickerson had informed in 2013 that the company was growing and had no plans for IPO. The company has chosed Goldman Sachs, Morgan Stanley and Allen & Co. for managing the IPO. The $100 million is a placeholder and could change. The company has not mentioned price range for the IPO.