Men’s fashion marketplace Grailed has secured a $60 million investment in a funding round led by sneaker resale player Goat Group.

The money will be used to launch new features and tools to step up innovations, including improvements to its digital authentication process—a typical point of friction on the consumer journey across the fashion resale industry.

Grailed will also be able to leverage Goat Group’s industry insight to accelerate growth, say officials.

The move, which involves two companies that compete with each other across some of the fashion resale space, has prompted talk of market consolidation, as second-hand fashion booms against the backdrop of the global pandemic.

While the two fashion marketplaces will remain separate entities, the COO of Goat Group, Yunah Lee, will join Grailed’s board of directors.

Groupe Artémis and Gucci CEO Marco Bizzari joined the California-based Goat Group in the Series B funding, along with existing investors Thrive Capital and Index Ventures.

“We are incredibly excited to lead Grailed’s second funding round and partner with them to advance the experience for our two communities,” said Eddy Lu, co-founder and CEO of Goat Group.

“Grailed and Goat share a common approach, based on authenticity, trust and a highly curated perspective on style, which is core to our brand as we bring the greatest products together from the past, present and future.”

“In Goat Group, we saw an incredibly like-minded partner who is just as passionate and forward-thinking about the global fashion community as we are,” added Arun Gupta, Grailed’s CEO.

“With Goat’s investment, we are excited to deliver powerful new features across the platform and to double-down on our bold innovations in authentication at an even faster pace.”

Grailed has nearly doubled in size since its Series A funding in 2018, with over 7 million users globally and more than 3 million listings from more than 10,000 luxury labels and streetwear designers, according to the company.

Founded in 2013, Grailed describes itself as “the leading community marketplace for curated men’s fashion.” It hosts streetwear, designer, and contemporary brands such as Supreme, Off White, Rick Owens, Raf Simons, Gucci, Saint Laurent, Balenciaga, Prada and Celine.

Goat Group, which was established in 2015, calls itself “the leading and most trusted sneaker marketplace in the world”, and also offers apparel and accessories. The group positions itself between the primary and resale markets, delivering products to over 30 million members across 170 countries, according to its own data.

Grailed’s competitors include Tradesy, ThredUp, Poshmark, Depop and StockX.

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