Online crafts marketplace Etsy has priced its IPO at $16 per share, which could take its valuation up to $1.78 bn.
The New York based company, which focuses on handmade or vintage items, is offering 13.33 million shares, out of which its shareholders are to sell 3.33 million shares, reported Reuters.
The company had 19.8 million active buyers as of December 2014 and 1.4 million active sellers. It earns from advertising platform, payment processing and shipping labels.
Around 29 million items are listed on the website, and the company charges a 20-cent listing fee for each item, along with fees of 3.5%for each completed sale.
Etsy’s major investors included Accel Partners, Union Square Ventures, Index Ventures, and Tiger Global Management.
Initially in 2005, Etsy started as a website that sold wooden goods, but by 2015, it has become an online community for crafters and artists to come together and offer their products to customers.
During 2014, the company recorded revenues of 195.59m, a rise of 56.4% when compared to the revenue generated in 2013. However, the net loss also rose from $796,000 in 2013 to $15.24m in 2014.
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