Luxury resale store Vestiaire Collective has transformed the way people consume desirable and luxury fashion with its trusted and inspirational resale model. The company specialized in pre-owned luxury items raised $64 Million. The new round brings on board Korelya Capital, funds managed by Fidelity International, Vaultier7 and Cuir Invest. Existing shareholders Eurazeo (Eurazeo Growth & Idinvest Venture funds), Bpifrance, Vitruvian Partners, Conde Nast, Luxury Tech Fund and Vestiaire Collective’s CEO, Max Bittner also reinvest.
Ahead of Earth Day’s 50th anniversary and in this unprecedented period of uncertainty, Vestiaire Collective, the global platform for desirable pre-owned fashion announced the completion of a $64 million round of financing, existing shareholders reinvest alongside new investors Korelya Capital, which is backed by Korean technology conglomerate Naver, funds managed by Fidelity International, Vaultier7, a specialist female-led consumer fund, and Cuir Invest, which is backed by the French Leather industry.
“The current economic and ecological crisis are accelerating an existing shift in consumer mindset, driven by growing criticism of waste-producing business models, and increased desire for purpose-driven brand action. As a company, Vestiaire Collective is committed to limiting the waste produced by the fashion industry, by keeping clothes out of landfill and increasing the number of times they are worn today, for a better tomorrow,” announced Vestiaire Collective in a statement.
Following the COVID-19 crisis, Vestiaire Collective expects further adoption of online shopping, but more importantly an increased focus on social values and communities, with more people supporting each other. Consumers are set to become increasingly resourceful as they look to resale as an additional way to raise funds and find unexpected value in their wardrobe.
Environmental concerns will further drive a more conscious approach to consumption, as 20% of consumers expect to reduce their clothing consumption following the crisis*.
Vestiaire Collective has seen deposits and orders quickly rebound to the pre-COVID 19 baseline or above. During this challenging period this clearly demonstrates customer demand for circular business models.
“I am personally convinced that this unprecedented period of disruption will not only challenge where we shop but how we shop,” said Max Bittner, Vestiaire Collective’s CEO. “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.”
This new round of funding will also allow for further acceleration of Vestiaire Collective international business beyond the countries where the company’s community is already well established. Currently, over 80% of the French headquartered company’s transactions are already generated cross-border.
Thanks to Korelya Capital, which is backed by Korean technology conglomerate Naver, Vestiaire Collective will jointly explore the expansion towards Japan, the biggest resale market in the world, and Korea in 2020 and beyond.
Finally, this round will help the company continue to drive ambitious growth in the US market.