Pre-owned luxury fashion platform Vestiaire Collective has completed a new €178 million financing round backed by Kering and Tiger Global Management.
It says the funding will accelerate its growth in the second-hand market and drive change for a more sustainable fashion industry.
Global French luxury group Kering, which owns the Gucci and Balenciaga brands, has acquired a five per cent stake and a seat on the board. US investment firm Tiger Global Management, another new investor, said it was ‘excited’ to support Vestiaire Collective’s global expansion plans.
Bpifrance, Condé Nast, and Eurazeo Group were among the previous backers to reinvest.
This latest financing round grants the company ‘unicorn’ status, with a valuation of over $1 billion.
The news follows a strong year for Vestiaire Collective. In a statement, the company said that its transaction volume grew over 100 per cent year-on-year, while its membership growth in 2020 was up 90 per cent to 11 million members in 80 countries. The platform reports an inventory of around 2.5 million items, including 140,000 new listings every week.
The pre-owned fashion sector has reported rapid growth over the last three years, with a further acceleration during the pandemic. This was driven predominantly by younger consumers and their increased focus on sustainability, plus a growing trend for social shopping and online communities.
According to Vestiaire Collective’s data, the amount of secondhand pieces in people’s closets is predicted to grow from 21 per cent in 2021 to 27 per cent in 2023. While it forecasts the value of the secondhand sector to be worth over $60 billion by 2025.
Maximilian Bittner, Vestiaire Collective’s CEO, said: “This latest round of investment confirms the incredible trajectory of Vestiaire Collective, founded during the 2008 crisis, the model has clearly demonstrated its ability to continue to thrive during challenging conditions.
“The resale sector as a whole is experiencing rapid growth, especially amongst Millennial and Gen Z consumers, which will come to shape the retail landscape of the future. We are incredibly excited to welcome Kering and Tiger Global Management, both of which will be instrumental in our mission to build a more sustainable fashion industry and further grow our incredible global community”.
François-Henri Pinault, Chairman and CEO of Kering, said: “Pre-owned luxury is now a real and deeply rooted trend, especially among younger customers. Rather than ignoring it, our wish is to seize this opportunity to enhance the value we offer our customers and influence the future of our industry towards more innovative and more sustainable practices. This fits naturally with our entrepreneurial spirit, our pioneering sustainability strategy, and our modern vision of Luxury.”
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