Oct 13, 2021
Poshmark Buys Tech Platform to Boost Authentication Services
(Bloomberg) -- Reseller Poshmark Inc. made its first acquisition, buying a technology platform to expand the authentication process for merchandise that people sell on its site.
The company didn’t disclose terms of the deal in a statement Wednesday.
Suede One, which was founded last year, uses machine learning, computer vision and human review to authenticate sneakers. A Poshmark spokesperson said the technology would help authenticate items that cost less than $500. The reseller uses human review to authenticate orders over $500 and has a policy that guarantees full refunds for merchandise that doesn’t match its description.
Poshmark, which went public in January, said it would potentially expand the Suede One service to additional categories. Chief Executive Officer Manish Chandra said in the statement that the acquisition would help the reseller “accelerate our momentum in sneakers as well as luxury goods, two of the fastest-growing categories in the resale space.”
Poshmark shares were up 0.7% to $23.26 in premarket trading at 9:04 a.m. in New York. The stock is down 45% since the initial public offering.
(Updates with shares in final paragraph.)
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