PARIS — Vestiaire Collective, the platform selling pre-owned luxury goods, has raised 178 million euros in funding.
Tech investor SoftBank Vision Fund 2 and sustainability investors Generation Investment Management backed the round in which existing shareholders Bpifrance, Condé Nast, Eurazeo and certain funds managed by Fidelity International and Koreyla Capital reinvested.
“The additional funding will provide considerable financial flexibility to Vestiaire Collective, a certified B Corp, allowing the company to further accelerate toward its long-term objectives in a highly attractive segment within the circular economy,” the company said in a statement released Wednesday.
Fashion’s secondhand market has been heating up for some time, driven especially by young consumers favoring more sustainable practices.
Of the financing round’s investors, Maximilian Bittner, Vestiaire Collective’s chief executive officer, said: “Their respective experiences as preeminent global investors supporting high-growth business models will be highly valuable to us in our next phase of development.”
“Vestiaire Collective is a great consumer-tech company that we believe is transforming the timeless luxury fashion industry for the better,” said Marcelo Claure, CEO and chief operating officer of SoftBank Group. “Vestiaire operates at the intersection of multiple sector trends with growth in luxury retail, ongoing shift to online and a focus on sustainability. And it is doing so with a business model that is well-positioned to scale globally.”
The fundraising now values Vestiaire Collective at $1.7 billion. Claure joins the luxury reseller’s board, and Generation Investment Management takes an observer seat.
Vestiaire Collective’s business keeps accelerating. During the past 12 months, it increased its number of orders by more than 90 percent globally. In the U.S., the uptick was 100 percent, making the country the platform’s largest market today. Meanwhile, orders grew by 150 percent in Asia.
In March, Kering snagged a 5 percent stake and board representation in Vestiaire Collective.
FOR MORE, SEE: