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Industry News 9 Vestiaire Collective raises $216M, becomes a fashion unicorn

Vestiaire Collective raises $216M, becomes a fashion unicorn

by | Mar 2, 2021 | Marketplaces, Niche Marketplaces, Financials / Deals

Vestiaire Collective, the leading second-hand luxury fashion marketplace in France, has raised €178 million ($216 million) in funding. The round was led by French luxury group Kering and Tiger Global Management, a U.S.-based investment firm. Kering’s stake in the company coming to 5% following another investment of €50 million ($60 million U.S.).

This latest round of financing has given the group unicorn status — or a valuation of more than $1 billion. Vestiaire, which was founded in 2009, has around 3 million listings and operates in 80 countries. The company’s existing investors include Balderton Capital, Condé Nast, Eurazeo and Ventech.

The pandemic has been kind to Vestiaire Collective. Transaction volume grew 100% year-on-year in 2020. Membership also increased 90% last year.

According to the company, the number of second-hand items in people’s closets is predicted to grow from 21% in 2021 to 27% in 2023 and the value of the second-hand sector overall is forecasted to be worth over $60 billion by 2025.

“The model has clearly demonstrated its ability to continue to thrive during challenging conditions,” said Maximilian Bittner, Vestiaire Collective’s CEO. “The resale sector as a whole is experiencing rapid growth, especially amongst Millennial and Gen Z consumers, which will come to shape the retail landscape of the future.”

The money raised from the latest round of funding will be used to improve technology and data innovation, as well as its goal of achieving carbon neutrality by 2026. The company also plans to use the funds to fuel international expansion into the U.S. and Asia Pacific.

“We are excited to support Vestiaire Collective’s continued global expansion plans, which focus on seizing the momentum of already spectacular growth in the United States and Asia Pacific,” said Griffin Schroeder, a partner at Tiger Global.

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