Vestiaire Collective now valued at $1.7bn following latest investment
Vestiaire Collective, the luxury fashion resale platform, is now valued at $1.7bn (£1.25bn) following a fresh fundraise which led to a $209m (£153m) investment headed by SoftBank Vision Fund 2.
Joining Softbank Vision Fund 2, a private-equity vehicle of the Japanese tech giant, in this latest funding round were Generation Investment Management, as well as existing shareholders such as Conde Nast and Eurazeo, as well as some funds managed by Fidelity International and Koreyla Capital.
The French-based business raised a similar sum of money in March of this year (circa £153m) securing the backing of luxury conglomerate Kering, which took a 5% stake in the business, and Tiger Global Management, underscoring the potential the fashion market and investors see in the luxury resale space, which Vestiaire Collective pioneered.
Vestiaire Collective said it would use the latest funds to invest in its technology and to enter new markets and it would be seeking to reduce its environmental impact, in particular around deliveries.
CEO Maximilian Bittner said of the latest deal: “We are honoured and delighted that SoftBank Vision Fund 2 and Generation Investment Management have decided to partner with Vestiaire Collective. It is a recognition of our achievements, and also confirms the attractiveness of our positioning embracing luxury, technology, sustainability and community. Their respective experiences as preeminent global investors supporting high-growth business models will be highly valuable to us in our next phase of development.”
Vestiaire Collective, which was launched in 2009, has been evolving its business model of late to include direct deals with luxury brands and retailers. It began life as a peer-to-peer sales service but earlier this year announced a deal with Kering-owned Alexander McQueen to power its resale service and has also partnered with luxury multi brand retailer Mytheresa. These deals form part of its "brand approved" strategy.