Pre-owned fashion continues to solidify its relevance in the industry.
On Wednesday, handbag reseller Fashionphile announced $38.5 million in Series B funding led by NewSpring Growth, which follows a minority investment made by Neiman Marcus in April of last year.
Founded in 1999, the “pre-owned ultra-luxury pioneer” has relied on its proprietary re-commerce technology, authentication expertise and pricing algorithm to stay relevant amid ever-increasing competition in the space.
Citing the broad success of the resale category, which, according to GlobalData retail, is set to grow to $64 billion in 2024, and, according to Fashionphile founder and president Sarah Davis, “our sales reflect this growth trend,” she said: “With a number of new services we’re rolling out regionally, and state-of-the-art tech authentication products in development, we’re excited to continue leading the ultra-luxury secondary market and cater to the needs of our clients.”
Similar to offerings at The RealReal, Fashionphile on Friday launched its “white glove” service, what Davis cites as “the next evolution of our VIP Concierge service,” allowing sellers to schedule pickups for their items, handing over the processes of authentication, pricing, cleaning, photographing and seamlessly listing goods to Fashionphile staff.
Fashionphile operates four selling studios in Beverly Hills, Newport Beach, San Francisco and Dallas, though it has expansion plans under way.
“While we’re not able to share exact locations at this time, stay tuned for more information soon on new Selling Studios in new areas to Fashionphile as well as regional fulfillment centers both domestically and abroad,” Davis said.
Though Neiman Marcus, Fashionphile’s most recent investor prior to this latest round of funding, is presently embroiled in bankruptcy and reorganization proceedings, Davis isn’t phased by any threat to the relationship.
“Our partnership and plans with Neiman Marcus are firmly intact as we have confidence in the strength of their business. We’re thrilled to continue in our partnership with them to support the full luxury lifecycle for the Neiman Marcus customer,” she said.
While consumers may have slowed their spending amid the pandemic, they’re still looking to luxury resale for moments when they’re not at home, however few.
Rebag, another luxury resale purveyor, was also able to secure funding amid the COVID-19 crisis, announcing $15 million in Series D funding in May, bringing its total funding to $68 million.
For More, See: