Vestiaire Collective, a startup operating a marketplace of the pre-owned fashion items, has reportedly announced the closure of another funding round amidst an economic crisis. The company raised €59 million in investment from this round which increases its total funding raised till date to €209 million. Vestiaire gives users the flexibility to both buy and sell their clothes and other accessories on the company platform.
The participants of the investment round that helped the company to secure €59 million includes Korelya Capital, Cuit Invest, Vaultier7, Fidelity International-managed funds, and other existing investors; Luxury Tech Fund, Condé Nast, Vitruvian Partners, Bpifrance, Eurazeo (Eurazeo Growth and Idinvest Venture funds), as well as CEO of Vestiaire Collective, Max Bittner.
The company would use these newly raised funds to expand its presence in countries across the world. However, since Korelya Capital is one of the investors of the company, it would expand into Japan and South Korea this year. While Vestiaire started in France, approximately 80% of its transactions currently are cross border.
Vestiaire has emerged as a great marketplace since its establishment, the startup now serves about 9 million members in over 90 different countries. It also makes sense that an e-commerce website working on pre-owned items is going well. Particularly because, there has been a massive backlash in fast fashion for the past few years.
While new fashion has gained a lot of importance in recent years, a lot of people across the world still value circular business models since it is more affordable to exchange clothes and fill the wardrobe, particularly in an economic crisis.
Originally, the company asked users to send their items to its warehouse for checking prior to listing them on the platform for sale. The company has also been working on direct delivery from a seller to the purchaser across Europe, and the plan seems to work well. The company also provides a reimbursement in case the product given is faulty or has an issue.