Online retailer Vestiaire Collective nets $64m to expand in Asia
Vestiaire Collective, a Paris-based ecommerce platform, announced that it has landed US$64 million in funding. Investors in the round include new backers Korelya Capital, Vaultier7, Cuir Invest, as well as funds managed by Fidelity International.
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Existing shareholders Eurazeo (Eurazeo Growth & Idinvest Venture funds), Bpifrance, Vitruvian Partners, Conde Nast, Luxury Tech Fund, and Vestiaire Collective’s CEO, Lazada founder Max Bittner, also invested.
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Vestiaire Collective CEO Max Bittner / Photo credit: Vestiaire Collective
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Launched in 2009, Vestiaire Collective is an online marketplace where users can buy and sell pre-owned luxury fashion items.
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It currently has over 9 million members across 90 countries, with offices in Paris, London, New York, Milan, Berlin, and Hong Kong. Over 80% of the company’s transactions are generated cross-border, according to a statement.
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Vestiaire said that it will explore expansion in South Korea and Japan this year, with the help of Korelya Capital, which is backed by Korean conglomerate Naver. It also looks to continue to grow in the US market.
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The French company wants to further develop its direct shipping model, where sellers send goods to customers directly without going through the platform’s control and authentication center.
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Launched last year, the new service has been adopted by over 50% of orders in Europe, growing at a rate of more than 60% month over month, Vestiaire said. It will be launched in the US in early summer this year, then in Asia before the end of 2020.
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Despite the Covid-19 pandemic, the company said it has seen deposits and orders rebound to the pre-outbreak baseline or even above it, which demonstrates customer demand for circular business models in the retail landscape. It expects that 20% of consumers will reduce their clothing consumption, as environmental concerns will further drive a more conscious approach to consumption.
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“I am personally convinced that this unprecedented period of disruption will not only challenge where we shop but how we shop,” Bittner said.
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The CEO previously co-led a US$45 million round for Vestiaire in June 2019.