Vestiaire Collective, a French luxury resale platform, has recently secured €178 million ($209 million) in new funding in a successful funding round. This brings the company’s valuation to $1.7 billion. The funding round included notable investors such as SoftBank Vision Fund 2 and Generation Investment Management, which was co-founded by Al Gore. Existing investors, including Bpifrance, Condé Nast, Eurazeo Group, and Korelya Capital, also participated in the round. This comes just six months after Vestiaire Collective raised a similar amount in its previous funding round, which saw investments from Tiger Global and Kering.

The fresh funding will be utilized for several purposes, including the expansion of Vestiaire Collective into new markets and the development of its technology and sustainability capabilities. CEO Maximilian Bittner highlighted the company’s focus on Asian growth, stating that Asian consumers are leading the way in terms of sophistication in e-commerce shopping. With the involvement of SoftBank, Vestiaire Collective hopes to position itself for success in the Asian market. The company has already experienced significant growth in the Asia Pacific region, with a 150% increase in orders over the past year. Globally, there has been a 90% growth in orders, with orders in the key US market doubling.

The global resale market is estimated to be valued at around $40 billion, according to a report by Boston Consulting Group. Another report commissioned by ThredUp, a leading player in the resale sector, predicts that global sales of secondhand items could reach $77 billion by 2025. However, profitability remains a challenge for some companies in this sector, as seen with the recent decline of Reebonz, a luxury resale platform based in Singapore.

Vestiaire Collective’s successful funding round and its focus on expansion demonstrate the immense potential of the luxury resale market. With support from prominent investors and its strong position in key markets, Vestiaire Collective is well-positioned to capitalize on the growing demand for sustainable and pre-owned luxury goods.

Useful links:
Vestiaire Collective Official Website
Boston Consulting Group