POCKET CHANGE: New York-based online luxury handbag seller Rebagg thinks it has a fresh take on the resale marketplace and so do investors.
The company said Thursday it closed on a $4 million seed round led by General Catalyst. The raise also included Metamorphic Ventures, Crosslink Capital, Founder Collective, Big Sur Ventures-Necotium and FJ Labs.
Rebagg intends to funnel the new funding into the company’s U.S. expansion, with particular attention paid to growth in metropolitan cities.
The company sells pre-owned handbags from a roster of designers that includes Alexander McQueen, Chanel, Balenciaga and Salvatore Ferragamo.
The firm’s sourcing model draws from a pool of about 1,200 stylists, personal shoppers and store associates who supply the bags Rebagg sells on its site. These partners can upload a picture of what they want to sell to receive a price quote. Sellers in New York or Los Angeles can have their items picked up for free. There’s also free shipping to sellers anywhere else in the U.S. Payment occurs within two to three business days after the item is received.
It’s that sourcing model that attracted some investors, including Fabrice Grinda of FJ Labs, who called it “highly efficient, scalable and addresses the number one problem in resale.”