Handbag resale company Rebag raises 25 million in Series C funding round
Feb 12, 2019
Luxury handbag ecommerce Rebag has received 25 million US dollars in a Series C funding round led by private equity firm Novator and existing investors General Catalyst and FJ Labs, bringing the total funding raised to 52 million US dollars.
Similarly to eBay and The RealReal, Rebag allows people to buy and sell designer handbags from brands such as Gucci, Fendi, Chanel, Hermès and Louis Vuitton. Buyers are guaranteed the authenticity of second hand bags thanks to a legitimized authentication process, while sellers benefit from upfront payment. Instead of having to wait for a consignment payment, those selling unwanted bags to Rebag are paid within 60 minutes in stores and within 1-2 days via Rebag’s website or app.
For handbag aficionados who want to always carry the latest trends, Rebag offers a service called Rebag Infinity, which promises “endless access to luxury bags”. When returning a bag after 6 months of use, Rebag Infinity users receive store credit worth at least 70 percent of the bag’s purchase price, allowing them to go from one bag to the next without breaking the bank.
“This model is not just transformative to the industry but the environment, and consumer buying behavior overall”, said Novator partner Birgir Ragnarsson in a statement. “The luxury resale market holds incredible growth potential”, he added. “Ultimately resale will become a pillar of the overall luxury ecosystem, as brands and retailers start to recognize the synergies”.
Rebag’s future plans
Rebag founder and CEO Charles Gorra says the funding will serve three main uses. First, it will go towards an accelerated retail expansion. The company currently operates five brick and mortar stores in areas of high online adoption in New York City and Los Angeles. The goal is to expand the retail footprint to 30 locations across the country, including both standalone stores and presence in luxury malls.
Secondly, Rebag plans on scaling its technology to improve the handbag evaluation tools. “We are a technology company first”, said Gorra. “Our goal is to become the standard for the luxury resale industry”.
Last but not least, the company intends to use the money to triple its staff, which now counts 100 employees. Rebag aims to boost its leadership with some more top-notch hires, after roping in Jay Winters (Delivery.com, Goldman Sachs) for the role of Chief Technology Officer and Elizabeth Layne (Bonobos, Appear Here) as Chief Marketing Officer.
Photos: Rebag Facebook