Today, San Francisco-based tech and logistics company Yerdle announced the closing of a $20 million Series C investment round with participation from Three Cairns Group, Commerce Ventures, DGNL and other existing investors.
Andy Ruben, founder of Yerdle, told WWD the company has raised money to “further establish branded resale as a category for brands and retailers looking to capture their fair share of massive customer shift,” meaning hiring is a priority, specifically for its engineering and warehouse operations.
At a time when marketplaces can’t be beat, retailers have joined them — as is the case with J.C. Penney, Neiman Marcus and Macy’s, among others, linking with resale marketplaces.
“Third-party marketplaces are winning because the customer is asking for it. When brands are doing this — they will win,” reiterated Ruben, crediting how the apparel resale market is projected to exceed $40 billion by 2022, according to a recent equity report from Wells Fargo.
Considered a pioneer in the scalable business-to-business resale solutions space, Yerdle powers the resale platforms of Arc’Teryx, Eileen Fisher, Patagonia, Taylor Stitch and REI and will continue to target new growth in the luxury, contemporary fashion and outdoor apparel markets with the funds raised.
As for the next few months, Ruben said Yerdle is focused on “storytelling,” providing customers with not only validity (knowing they purchased goods approved by the brand) but the fuller scope of ownership during their purchase experience.
Ruben, in a way, shakes his head in disbelief over the perceived opportunity for fashion brands, still largely untapped. And looking ahead, Ruben believes, “In 2029, we’ll be having the same conversation about supply.”
When players across the industry are invested in the resale market, the competition will be more readily differentiated by take-back programs, item credits and other incentive-based loyalty programs — to get goods back from the customers.
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