Secondary market sales of fashion and luxury goods are booming, with the global market for secondhand luxury goods growing by 28 percent in 2022 to reach $45.21 billion, according to Bain & Company. That is 1.3 times higher than the growth rate for new luxury goods. “The secondhand market is already worth 3 percent to 5 percent of the overall apparel, footwear, and accessories sector,” according to Boston Consulting Group, which says that the segment “could grow to as much as 40 percent, depending on macroeconomic conditions.” Such growth is likely to be helped by changing consumer preferences and the macroeconomic climate, with consumers increasingly tapping into the online consignment segment to save money and to shop more “sustainably.”
All the while, new market entrants have rushed to meet burgeoning demand (bringing “an increased supply of goods” with them, per Bain) and existing players are looking to differentiate themselves and their value propositions. Against this background, funding keeps pouring into the secondary market – whether it be funneled into new resale platforms or already-established ones that are looking to expand their operations, including in an international capacity – and all the while, given the increasingly crowded nature of the market, consolidation is starting to come into effect, with existing entities joining forces to grab a bigger share of the market.
With so much activity underway on the resale and rental space, we have compiled a tracker of funding and M&A events to provide a broad overview of which players are fundraising, merging, and what the trajectory of this segment of the market – which only appears to be gaining in steam – looks like more generally.
Mar. 18, 2024 – FASHIONPHILE Acquires Assets of Two Authenticators Inc.
FASHIONPHILE has purchased the assets of Two Authenticators Inc. (“2a”), a Montreal-based wholesale distributor of authenticated, pre-owned luxury vintage. The San Diego-based luxury resale company revealed that following the acquisition, Fred Mannella, co-founder and CEO of 2a will assume the role of Senior Vice President of Wholesale at FASHIONPHILE, reporting to co-founder and CEO Ben Hemminger. “We continue to be excited about the opportunity to diversify our omnichannel operations and enter the secondhand wholesale market in the U.S. and internationally,” Hemminger said. “By acquiring 2a and adding Fred Mannella to our team as one of the world’s leading luxury vintage experts, we are well positioned to enter this new phase of growth as we look to provide trusted, authenticated, branded accessories to all sectors of the growing market for secondhand luxury.”
Jan. 29, 2024 – Trademylux Limited Raises £300K for Resale Site Launches
Trademylux Limited has raised £300,000 from TRICAPITAL Angels Limited and Scottish Enterprise, as it aims to launch a number of luxury goods resale platforms. The Edinburgh-based company – which employs “stringent checks to establish proof of identity, ownership rights and authenticity” of the goods at issue – stated that the first of such sites, sellmyartworks.com, will “focus on the art resale market” and will be followed by other luxury goods resale platforms. Founder Bob Corsie said, “There is a real demand for an easy-to-use, secure and equitable resale service[s] … and burgeoning demand on the customer side which we can satisfy easily and cost effectively.”
Jan. 23, 2024 – Vestiaire Collective Launches Crowdfunding Round
Vestiaire Collective has launched a crowdfunding campaign with the aim of raising at least one million euros ($1.09 million) from individual investors amid a bid to “become profitable by year-end and potentially go public.” The Paris-headquartered resale company’s funding round, which is open to anyone over age 18 in Europe and the United Kingdom, is accessible via its website and mobile app, according to CEO Maximilian Bittner. According to Reuters, “The crowdfunding is priced at 1.78 euros ($1.94) per share, valuing Vestiaire at 1.1 billion euros ($1.20 billion). That is in line with a November funding round led by private equity firm Eurazeo, its biggest shareholder with a stake of around 25%. In mid-2022 the company was valued at 1.4 billion euros.”
Jan. 16, 2024 – BrandAlley Acquires The Edit LDN
Off-price fashion retailer BrandAlley has acquired The Edit LDN following a “difficult economic climate” for the sneaker and streetwear resale platform in 2023. The terms of the deal have not been disclosed. “We’re incredibly excited for the journey ahead and look forward to working with Rob Feldmann, Ray Clacher and the executive team taking The Edit LDN to infinity and beyond with the Brand Alley family,” The Edit LDN’s CEO and founder Moses Rashid stated on LinkedIn.
Dec. 5, 2023 – HURR Raises £7.9M in New Round
HURR has raised £7.9 million ($10 million) in a new funding round from Praetura Ventures and participation from existing investors including Ascension, D4 Ventures, and Octopus Ventures. The latest round for the UK-based fashion rental platform, which was founded in 2017 by Victoria Prew, comes on the heels of HURR raising £4 million in a 2021 Seed round led by European VC firm Octopus Ventures. “Combining our incredible peer-to-peer community whilst also powering rental for 130+ of your favourite fashion brands and the UK’s four biggest retailers,” HURR said in a statement.
Nov. 10, 2023 – FASHIONPHILE Acquires LXRandCo
FASHIONPHILE has acquired the inventory, intellectual property assets, including domains, and other intangible assets of LXR Luxury Products International Inc., Groupe Global LXR Inc., and LXR Canada Inc., which are the operating subsidiaries of LXRandCO, Inc., the Montreal-based omni-channel retailer of authenticated, pre-owned luxury accessories. The deal comes on the heel of the LXRandCO subsidiaries filing a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (Canada).
The acquisition of LXR – which “has curated, sourced and authenticated high-quality, pre-owned products from iconic brands, such as Hermès, Louis Vuitton, Gucci, Prada and Chanel, selling directly to customers through their website and indirectly by powering the e-commerce and other platforms of key channel partners” – will facilitate FASHIONPHILE’s ability to diversify its selling channels beyond direct-to-consumer, elevated circular retail experiences and clienteling and expand into B2B wholesale and new omnichannel operations.
Oct. 26, 2023 – Worthy and CIRCA Jewels to Merge in $100M Deal
Fine jewelry and luxury watch marketplaces Worthy and CIRCA Jewels will merge to create a company that they say is worth more than $100 million. The two real companies connect sellers and buyers of pre-owned fine jewelry and watches, “with Cartier and Rolex being the most-traded signed jewelry and watch brands on the platforms,” per Reuters. “The companies said they will continue to operate under their own banners for now. Worthy’s Steven Schneider will continue to serve as chief executive officer while CIRCA CEO Oren Schneider will become General Manager.” Schneider said in a statement, “You have to have deep product expertise and have a path to create transparency and value and I think we do that better than anyone else in the market, certainly as a combined business.”
Oct. 20, 2023 – PopChill Raises $1.9M in New Round
PopChill has raised $1.9 million in a new round from ITIC, AVA Angels Fund, 500 Global, Acorn Pacific Ventures, and Darwin Venture, bringing its total funding to date to $5.2 million. The Taiwan-based luxury resale marketplace will use the new funds to expand into the Hong Kong market, hoping to replicate the rapid growth experienced in Taiwan over the past year. PopChill’s co-founder, Andy Kuo, said in a statement: “After a year of operation, the current monthly transaction volume in the Taiwanese market has exceeded US$1 million. The average order value on the platform has also reached $800, representing the trust that buyers and sellers have in the platform.” The Taiwanese market maintains a growth of at least 10% every month, not only establishing a reputation in the luxury market but also gradually reaching a wider audience.
Oct. 19, 2023 – Vopero Raises $4M in New Round
Vopero has raised $4 million in new funds in a round led by Cencosud Ventures. The Uruguayan resale startup will use the funds to accelerate its in Latin America-specific expansion plans, including its intent to launch in Chile by the end of the year and aim to establish partnerships with physical retailers to showcase its items. Additionally, Vopero plans to expand its franchising program in department stores and increase adoption of resale practices among top fashion brands. The funding will also support Vopero’s marketing efforts, including collaborations with influencers to promote sustainable fashion choices. The company’s “resale-as-a-service” model offers an end-to-end solution for sellers, making it easy to list and sell second-hand items. “With a focus on sustainability and convenience,” Vopero says that it “aims to revolutionize the way Latin American consumers access and purchase pre-owned fashion.”
Oct. 18, 2023 – NOLD Raises €1M in Seed Round
NOLD has raised €1 million in a Seed round led by Tilia Impact Ventures with participation from a consortium of venture capital and strategic investors, including Depo Ventures, Czech Founders, Sofia Angels Ventures, and New Vision 3, among others. The funds will be used to support the launch and adoption of NOLD’s fashion resale platform in the first quarter of 2024, with a primary focus on the UK market. The Boryana Uzunova and Ana Kremenlieva-founded Bulgarian resale company boasts a “peer-to-peer marketplace that redefines fashion resale [and] empowers brands and their customers to seamlessly enter the resale market while ensuring the fastest, most aesthetic, financially-efficient, and environmentally-efficient experience.”
NOLD said in a statement that it “prizes itself on the user engagement, brand partnerships, and industry endorsement. If the brands want to cooperate with the platform, they can provide their product database and choose to either capture 10% of the resale value in net profit or 90% in revenue.”
Oct. 12, 2023 – Pickle Raises $8M in Seed Round
Pickle has raised $8 million in a Seed round led by FirstMark Capital and Craft Ventures with participation from Burst Capital. The NYC-based peer-to-peer rental marketplace, which makes local closets shareable on demand, will use the new funds to expand into new categories, new U.S. markets, and into brick-and-mortar retail in New York. CEO Brian McMahon said in a statement, “There’s a lot of research on marketplaces and the competitive landscape and we just really fell in love with the market business model.”
This is a short (and incomplete) excerpt from a data set that is published exclusively for TFL Enterprise subscribers. For access to our up-to-date resale investment and M&A tracker, inquire today about how to sign up for an Enterprise subscription.
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