Second-hand fashion platform Vestiaire Collective has secured 210 million dollars in fresh funding as it continues to establish itself as one of the major players in the red-hot resale market.
The latest funding - which included participation from two new investors, SoftBank Group Corp and Generation Investment Management - raises the valuation of the Paris-headquartered business to 1.7 billion dollars.
“This is yet another testimony that all the attention is on us and our industry to further transform fashion for a better future,” Vestiaire Collective announced on Wednesday. “We can’t wait to tackle what’s ahead of us.”
In March, the company announced the completion of a 216 million dollar financing round backed by Gucci-owner Kering and US-based hedge fund Tiger Global Management.
Kering chairman François-Henri Pinault at the time described the booming resale market as a “real and deeply rooted trend” as his firm snapped up a 5 percent stake in Vestiaire Collective.
Booming resale market
According to Vestiaire Collective, the amount of second-hand pieces in people’s closets is predicted to grow from 21 percent in 2021 to 27 percent in 2023 as consumer demand for more sustainable fashion continues to grow.
The company, which earlier this month revealed it had become the first resale fashion platform to receive B Corporation certification, has established itself at the heart of the burgeoning second-hand fashion market in recent years, competing with the likes of Vinted, Depop and ThredUp.
And as the market has grown, deep-pocketed rivals born outside the resale scene have taken note of the hugely bankable opportunity, with giants like H&M and Urban Outfitters announcing the launch of their own resale platforms in recent months.
Vestiaire Collective said it expects the resale market to be worth over 60 billion dollars by 2025.