Vestiaire Collective secures 59 million euros in funding
Apr 21, 2020
Vestiaire Collection, the leading marketplace for pre-owned luxury apparel and accessories, has raised 59 million euros to help it expand into Japan and Korea and launch its direct shopping service in the US.
The new funding round brings on board Korelya Capital, funds managed by Fidelity International, Vaultier7, a specialist female-led consumer fund, and Cuir Invest, which is backed by the French Leather industry.
These invested alongside existing shareholders Eurazeo (Eurazeo Growth and Idinvest Venture funds), Bpifrance, Vitruvian Partners, Conde Nast, Luxury Tech Fund and Vestiaire Collective's CEO, Max Bittner.
The investment will allow for the further acceleration of Vestiare Collective’s international business, as currently 80 percent of the French headquartered company’s transactions are already generated cross-border.
With support from Korelya Capital, which is backed by Korean technology conglomerate Naver, Vestiaire Collective will “jointly explore" the expansion towards Japan, which the company notes is the “biggest resale market in the world”, and Korea in 2020.
In addition, this funding round will be used to “drive ambitious growth” in the US market and further develop its direct shipping model that was launched in Europe in September 2019. Currently, more than 50 percent of orders in the EU are fulfilled through the new service, which is also growing at a rate of +60 percent month-on-month. The model will be launched in the US in early summer followed by Asia before the end of 2020.
Korelya Capital invests in Vestiaire Collective as resale giant looks to expand into Japan and Korea
The resale platform also added that it expects the current Covid-19 crisis to accelerate an existing shift in consumer mindset, driven by growing criticism of waste-producing business models, and increased desire for purpose-driven brand action, as well as further adoption of online shopping, with an increased focus on social values and resourcefulness in purchasing.
Vestiare Collective says it has seen deposits and orders rebound quickly to the pre-Covid-19 baseline or above, and it expects that environmental concerns will “further drive a more conscious approach to consumption”, as 20 percent of consumers expect to reduce their clothing consumption following the crisis, according to McKinsey Covid-19 response in Apparel and fashion study.
Vestiaire Collective's chief executive, Max Bittner, said in a statement:"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.”
Paul Degueuse, general partner of Korelya Capital added: "As we all take a step back and contemplate the way we live, we believe consumption patterns are on the verge of a deep structural evolution, and C2C platforms have a strong role to play here. We see in Vestiaire Collective an emerging leader and catalyst of this upcoming disruption.
“We are extremely enthusiastic to support Vestiaire Collective and its founders in its expansion. There are tremendous opportunities for growth in Asia, and we look forward to helping the company accelerate its expansion in this part of the globe."
Image: courtesy of Vestiaire Collective