Vestiaire Collective, a secondhand fashion site, has announced a $216 million financing round backed by luxury giant Kering and U.S. investment firm Tiger Global Management.
As a result, Kering, the luxury giant that owns brands like Boucheron, Pomellato, and Ulysse Nardin, will own around 5% of Vestiaire Collective and get a seat on the company’s board. Kering is the latest big name to jump on the secondhand bandwagon; in 2018, another major luxury conglomerate, Richemont, purchased secondhand watch site Watchfinder.
The latest fundraising round for the Paris-based Vestiaire Collective, which was launched in 2009, follows an April 2020 fundraising round in which it raised $64 million. A statement from the site said that its growth has been accelerated by the pandemic, with its transaction volume growing 100% over the past year, and its membership jumping 90%.
As part of this new arrangement, Vestiaire Collective has also launched a “Brand Approved” collaboration with Kering-owned brand Alexander McQueen.
Vestiaire Collective’s statement forecast that the secondhand market will be worth over $60 billion by 2025, due in part to increasing consumer concerns over sustainability.
“Pre-owned luxury is now a real and deeply rooted trend, especially among younger customers,” said François-Henri Pinault, chairman and CEO of Kering, in the statement. “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.”
Vestiaire Collective has applied to be a Certified B corporation. It aims to be carbon neutral by 2026.
Said Maximilian Bittner, Vestiaire Collective’s CEO: “[Our] 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.”
Goldman Sachs served as Vestiaire Collective’s strategic adviser and private placement agent during its financing round.
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