Luxury pre-owned fashion platform Vestiaire Collective has announced the completion of a €59 million (AU$99 million) round of financing.
After opening to Australian sellers in 2018, Vestiaire Collective has accelerated global expansion with Japan and Korea now on the cards.
According to thredUP’s annual resale report, the current total secondhand market is about $24 billion — that number is expected to hit $51 billion by 2023.
The equity raise includes existing shareholders alongside new investors Korelya Capital, which is backed by Korean technology conglomerate Naver and funds managed by Fidelity International.
It also includes Vaultier7, a specialist female-led consumer fund and Cuir Invest, which is backed by the French leather industry.
Currently, over 80% of the French headquartered company’s transactions are already generated cross-border.
With the backing of Korelya Capital, Vestiaire Collective will jointly explore the expansion towards Japan, the biggest resale market in the world, and Korea from 2020.
The round will also help Vestiaire Collective continue to drive growth in the US market and further develop its Direct Shipping model.
Launched in Europe in September 2019, the service is increasingly popular with a growing number of customers.
Currently already over 50% of orders in the EU are fulfilled through the new service, which is also growing at a rate of +60% MoM.
The model will be launched in the United States in early summer followed by Asia before the end of 2020, which could have broader benefits for the Asia Pacific market including Australia.
Vestiaire Collective CEO Max Bittner said he believed the time is ripe for circular fashion, as deposits and orders have quickly rebounded to the pre-COVID 19 baseline or above.
“I am personally convinced that this unprecedented period of disruption will not only challenge where we shop but how we shop.
“Vestiaire Collective was built during the 2008 crisis, and proves today how it can help people in their daily life to make the most out of their belongings, but also to access fashion in a sustainable and conscious way.
“Everyday, I feel proud and amazed by our global community of fashion activists who are leading the way towards a brighter future.”
The funding comes during Fashion Revolution Week, an event spotlighting ethical and sustainable fashion globally.