Vestiaire Collective, the global platform for pre-owned fashion has completed a €59 million round of financing, as it says the COVID-19 crisis is accelerating the shift to circular fashion business models.
Existing shareholders have reinvested in the platform alongside new investors Korelya Capital, which is backed by Korean technology conglomerate Naver, funds managed by Fidelity International, Vaultier7 and Cuir Invest, which is backed by the French Leather industry.
Vestiaire Collective said it had seen deposits and orders “quickly rebound to the pre-COVID 19 baseline or above”. The platform has nine million customers and focuses on the re-sale of premium and luxury fashion.
The company said the latest round of fashion would accelerate its international expansion. Currently, over 80% of the French headquartered company’s transactions are already generated cross-border.
It will focus in particular on expansion in the US market and further developing its Direct Shipping model. Launched in Europe in September 2019 the service is increasingly popular with a growing number of customers, the company said.
Currently already over 50% of orders in the EU are fulfilled through Direct Shipping, which is also growing at a rate of +60% month on month. The model will be launched in the United States in early summer followed by Asia before the end of 2020.
Max Bittner, Vestiaire Collective CEO said: “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.”
The platform’s existing investors who also took part in the funding round include: Eurazeo (Eurazeo Growth & Idinvest Venture funds), Bpifrance, Vitruvian Partners, Conde Nast, Luxury Tech Fund and Vestiaire Collective CEO, Max Bittner.
It was launched in Paris in October 2009 and now has nine million members across 90 countries worldwide with offices in Paris, London, New York, Milan, Berlin and Hong Kong. Over 60,000 new items are submitted by its community of sellers every week.