The US-based online luxury re-sale business The RealReal has secured 14 million dollars in funding to expand its infrastructure and support its growth. The company, which holds sales on anything from Chanel to current designer trends,
has grown revenue tenfold in the last year and receives over 1.5 million visits per month.
2nd hand luxury items still lucrative
"We're changing the way people view their designer wardrobe and luxury items," said The RealReal founder and CEO Julie Wainwright . "We offer consignors a way to get a return on what they originally paid for their designer items, effortlessly and lucratively. And, we offer shoppers a fun way to shop."
This round of funding is led by InterWest Partners with participation from all Series A investors: Canaan Partners, e.ventures and Greycroft Partners. The company also added strategic investments from Novel TMT Ventures, Panarea Capital, Suzy Welch and Sukhinder Singh Cassidy .
"The RealReal is one of those thrilling, transformative business ideas you just don't see very often," said business journalist Suzy Welch. "I believe The RealReal has the power to change the way many women think about and acquire fashion and, in essence, change the whole lifecycle of luxury goods. Ultimately, I see it recreating the industry in a way that will benefit consumers and sellers alike."
Product checked for authenticity prior to sale
The Real Real offers its customers authenticated pre-owned designer brands including Chanel, Hermes, Louis Vuitton , Gucci and Cartier, all at up to 90 percent off original retail. The RealReal takes possession of all items prior to sale in order for its merchandising team, authentication specialists and skilled gemologists to evaluate each item. The company also offers buyers merchandise returns, with an in-house customer service team available to answer specific product questions.
Consignors in major U.S. cities can schedule a free pickup or use the company's direct service through its iPhone consignment app or online form. Consignors make up to 70 percent of the selling price.
Image: The RealReal