Online resale store ThredUp is reportedly in talks to go public. 

According to Bloomberg, which cited people with knowledge of the matter, the online marketplace is in talks with investment banks to submit proposals for potential roles in its IPO.

One of the sources said the IPO, planned for next year, could raise between US$200-300m.

Pre-loved clothing sites are quickly gaining traction.

According to research from ThredUp, the secondhand clothing market is expected to hit $64bn in the next five years and grow to almost twice the size of the fast fashion market by 2029.

Earlier this year, US retail giant Walmart signed a partnership with ThredUp as it looks to enhance its offering amid a bid to establish as a destination for fashion. The move followed ThredUp's partnership with Gap. 

Meanwhile, Swedish retailer H&M debuted its online second-hand clothing shop Sellpy in Germany last month.

ThredUp did not respond to a request for comment at the time of going to press.