Vestiaire Collective raises $216 million for its second-hand fashion platform

Vestiaire Collective announced a new funding round. The company has raised $216 million, or €178 million — it has reached a valuation above $1 billion, making it a unicorn. French fashion and luxury group Kering is leading the round with Tiger Global Management. Kering now owns 5% of Vestiaire Collective.

The startup operates an online marketplace where you can find pre-owned luxury and fashion items. And it’s a complicated industry as you don’t want to buy a damaged item or a cheap knockoff. The company controls and authenticate some items before they reach the buyer. If you opt for direct shipping, you can get reimbursed if there’s something wrong with what you ordered.

In addition to the two lead investors, many of the company’s existing shareholders are investing once again, such as Vestiaire Collective’s own CEO Max Bittner, Bpifrance’s Large Venture fund, Condé Nast, Eurazeo through Eurazeo Growth and Idinvest Venture, Fidelity International, Korelya Capital, Luxury Tech Fund and Vitruvian Partner.

As you may have noticed, it’s been a bit harder to travel and buy fashion items in store. Many fashion e-commerce companies have been thriving during the coronavirus outbreak, and Vestiaire Collective is one of them. Transaction volume doubled in 2020 compared to 2019. There are 140,000 new listings every week.

In addition to the current pandemic, many consumers are concerned about the impact of fashion on the environment. At the lower end of the spectrum, retailers and fast fashion brands encourage you to buy more and more stuff as trends change with each season. At the higher end of the spectrum, luxury brands don’t want to undermine the value of their goods by putting items on sale to clear room for a new collection.

That’s why Vestiaire Collective is particularly well positioned to find new customers who are looking for quality goods that are going to last for a while and that haven’t been specifically produced for them. Similarly, people can sell their stuff instead of throwing them away.

While Vestiaire Collective originally started in Europe, the company is now growing rapidly in the U.S. and Asia. “As of January 2021, local sellers in those regions had increased their items sold by more than 250% year-over-year,” Tiger Global partner Griffin Schroeder said in the release.

With today’s funding round, the company plans to further develop partnerships with brands through buy-back circular solutions. The company also wants to encourage more people to sell something every time they buy something. Vestiaire Collective aims to be carbon neutral by 2026 and get the B Corp certification. The startup will also hire 155 people in the technology team.

#ecommerce, #europe, #france-newsletter, #fundings-exits, #startups, #vestiaire-collective

0

Vestiaire Collective raises $64.2 million for its second-hand fashion platform

Vestiaire Collective just closed another big round of funding in the middle of an economic crisis — the round closed in early April. The startup raised $64.2 million (€59 million) and the company has raised more than $240 million over the year, according to Crunchbase. Vestiaire Collective operates a marketplace of pre-owned fashion items. Users can both sell and buy clothes and accessories on the platform.

There’s a huge list of investors in today’s round — Korelya Capital, Fidelity International-managed funds, Vaultier7, Cuit Invest and existing investors Eurazeo (Eurazeo Growth and Idinvest Venture funds), Bpifrance, Vitruvian Partners, Condé Nast, Luxury Tech Fund and Vestiaire Collective CEO Max Bittner are all participating.

With 9 million members across 90 countries, Vestiaire Collective has become a huge marketplace. And it makes sense that an e-commerce website focused on pre-owned items is working well. There has been a ton of backlash against fast fashion over the past few years.

People now also value circular business models as it becomes more affordable to refresh your wardrobe, especially during an economic crisis, and it is better for the environment.

As always, Vestiaire Collective will use the new influx of cash to expand to more countries. In particular, with Korelya Capital as a new backer, the company will expand to South Korea and Japan this year. While the company started in France, 80% of transactions are now cross-border transactions.

Originally, Vestiaire Collective asked you to send your items to its warehouses to check them before putting them on sale. The startup has been betting on direct shipping from the seller to the buyer in Europe and it has been working well. You can get reimbursed if there’s something wrong with what you ordered though.

Direct shipping has been available in Europe since September 2019 and it now represents over 50% of orders in the region. Up next, Vestiaire Collective will introduce direct shipping in the U.S. this summer and in Asia by the end of 2020.

#ecommerce, #europe, #fashion, #france-newsletter, #fundings-exits, #recent-funding, #startups, #vestiaire-collective

0