Estonian startup Upty acquires Finnish counterpart Rekki; plans to open the seed cycle
The Estonian company also plans to launch a fundraiser in the coming months to accelerate its expansion in Europe.
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The current acquisition will allow sellers and buyers who wish to participate in the resale of eco-friendly fashion to benefit from more choice. According to Upty, the acquisition comes at a good time as the Extended Producer Responsibility (EPR) scheme is expected to come into effect by 2024.
According to the scheme, European waste collection companies will not be allowed to unload clothes collected from the fields. Upty says it’s aligned with broader consumer and government trends around reuse, recycling and reducing textile waste.
After the acquisition, the Upty Group plans to expand into Germany by the end of the year and into Poland, the Czech Republic, the Netherlands and Sweden over the next two years.
Rekki: What you need to know
Based in Tampere, Finland, Rekki is an online marketplace for consumers who want to dispose of their clothes and accessories in the easiest and most responsible way possible.
Founded by Bertta Häkkinen and Tero Ylönen, the platform offers an alternative for people who want to consume sustainably and value branded clothing, whether new or used.
Tero Ylönen, CEO of Rekki, said, “Rekki is thrilled to partner with Upty. The group has exciting and ambitious plans for the future, and we look forward to contributing to the development of circular fashion across Europe as we expand our reach.
Upty: What you need to know
Dmitri Nogin founded Upty in 2020 to reduce consumption and the environmental impact of everyday social life. The company’s platform allows consumers to declutter their closets while allowing them to purchase like-new items at a discount of up to 90%.
Upty CEO Sergei Brek said, “Adding a well-established e-commerce player like Rekki to a fast-growing Upty platform marks the creation of a serious player in the circular economy, not only in the geographies where we currently operate, but across Europe as eco-friendly fashion practices continue to gain market traction.
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