Textbook Rental Company Files for IPO


Textbook Rental Company Files for IPO

Aug 16, 2013

CHEGGIN' OUT THE MARKET: The Wall Street Journal reports that Santa Clara, CA-based textbook rental company, Chegg has filed for an IPO that could raise as much as $150 million. The company filed through the JOBS Act, described by AllThingsD as a "secret filing" that allows private company with less than $1 billion in annual revenue to quietly get a jumpstart on the offering process while minimizing public scrutiny. The proposed ticker symbol: CHGG.

The company has raised an estimated $195 million in venture funding. Chegg also announced the addition of four new board members, including the executives from Shutterfly and the San Francisco 49ers, while it's co-founder, Aayush Phumbhra, is stepping down from the board.

Analysts appear to be ambivalent at best about Chegg's business. Business Insider says "Chegg has never made a profit" from its textbook rental business, although first half 2013 results suggest the company is stemming its hemorrhage of losses. TechCrunch says the company has "lost a total of $170 million to date." The filing paperwork can be found here.

Learn more about EdSurge operations, ethics and policies here. Learn more about EdSurge supporters here.

More from EdSurge

Get our email newsletterSign me up
Keep up to date with our email newsletterSign me up