ThredUp, the popular fashion resale site based in the U.S., is making its way into the European market through its acquisition of Remix Global AD, a well-known fashion resale company in Europe. The move comes at a time when the secondhand market in Europe is expected to grow to a staggering $39 billion by 2025.

The acquisition deal for Remix involves a cash payment of approximately $28.5 million, along with $6.5 million worth of restricted stock units that will be given to the Remix management team and vest over a four-year period. The transaction is set to be finalized in the fourth quarter of this year, pending the usual closing conditions.

As part of the acquisition agreement, Remix will continue to operate as an independent business unit within ThredUp, with CEO Lyubomir Klenov leading the charge in expanding the company’s presence in Europe. ThredUp plans to establish a strong foothold in key European markets and capitalize on Remix’s expertise in managing operations across multiple countries within the continent.

James Reinhart, the co-founder and CEO of ThredUp, expressed his excitement about the acquisition, emphasizing Remix’s customer-centric approach and operational capabilities. He believes that the European resale market holds immense potential and looks forward to utilizing the technology and operations of Remix to drive growth.

Lyubomir Klenov, CEO of Remix, also spoke highly of the partnership with ThredUp. He commended ThredUp’s leadership in the United States and their dedication to making secondhand buying and selling more accessible. Klenov sees the combined strengths of Remix’s operations, technology, and logistics with ThredUp’s scalability as a powerful way to tap into the untapped potential of the European market.

This acquisition will accelerate ThredUp’s expansion plans in Europe and complement its existing strong growth domestically, as well as its expansion of Resale-as-a-Service (RaaS). ThredUp has recently formed partnerships with renowned brands including Vera Bradley, Farfetch, LG, and Madewell. With the addition of Remix, ThredUp gains valuable operational infrastructure and a seasoned management team that will support its marketplace growth in Europe.

Beyond marketplace expansion, ThredUp intends to invest in Remix’s product offerings, processing infrastructure, and go-to-market strategy. The acquisition also presents an opportunity for ThredUp to extend its RaaS platform beyond the United States, allowing brands and retailers to provide tailored resale experiences to their European customers.

ThredUp’s expansion into Europe follows its successful initial public offering in March, where it raised $168 million and achieved a valuation of roughly $1.3 billion. With the acquisition of Remix, ThredUp is well-positioned to capitalize on the increasing demand for secondhand fashion in Europe and strengthen its position as a leader in the global fashion resale industry.

Useful Links:
1. ThredUp
2. Remix Global AD