Etsy seeks to raise $100 million in IPO

Source: CNET.com

Etsy, the online crafts marketplace, filed papers on Wednesday to raise $100 million in an initial public offering.

Founded in 2005, the website derives its revenue from listing fees and commissions on the sale of items such as handmade jewelry, crocheted wool booties and antique mother of pearl silverware. Etsy's move is part of a recent resurgence in IPOs that's included the likes of Chinese e-tailer Alibaba and data-storage service Box.

Etsy reported a net loss of $15.2 million on $196 million in revenue last year, a 56 percent increase over the previous year, according to the company's filing. It also recorded $1.93 billion in gross merchandise sales last year.

Etsy said it would use the proceeds of the IPO for working capital and corporate investments, including marketing to attract new members, developing localized services and developing relationships with third-party service providers.

The site currently has 54 million members, 1.4 million sellers and 19.8 million buyers, the filing said.

Etsy declined to comment further on the filing, citing Securities and Exchange Commission "quiet period" rules.

"I appreciate your patience with us during this process and we will share more information when we can," Etsy's Chad Dickerson said in a blog post Wednesday.

The company will trade on the Nasdaq under the symbol ETSY, the company said in its S-1 form filed with the SEC. Goldman Sachs, Morgan Stanley and Allen & Co. have been named as underwriters.