SoftBank invests $ 209 million in Vestiaire Collective
French online fashion platform Vestiaire CollectiveThe $ 1.7 billion valuation rose to $ 1.7 billion after a fundraiser that includes $ 209 million from the private equity arm of SoftBank Group Corp. SoftBank Vision Fund 2, according to a Bloomberg report Wednesday, September 22.
Other investors in Vestiaire’s latest round of funding include Generation Investment Management and existing shareholders, including Condé Nast and Eurazeo. The company raised the same amount in May in a fundraising effort that included the owner of Gucci, Kering SA and Tiger Global Management.
Chief Operating Officer of SoftBank Marcelo Claure will join Vestiaire Collective’s board of directors as part of its investment.
Vestiaire Collective will use the new influx of cash to improve its technology and enter new markets, according to the Bloomberg report. Business leaders also want to build a “more sustainable fashion industry”, including encouraging local transactions to reduce the carbon footprint of deliveries, according to the report.
These logistics represent “our largest share of carbon emissions; we are really working to reduce this, ”said the CEO of Vestiaire Collective Maximilian Bittner noted.
Vestiaire said its global orders rose 90% in the past 12 months and doubled in the United States. The company is making further progress in Hong Kong, Singapore and other Asian markets.
Related: The second-hand market presents a ‘big opportunity’ for retailers ahead of the holidays
Marcus Shen, chief operating officer at Stock, told PYMNTS that demand for second-hand items “has gone crazy” during the COVID-19 pandemic as the world moves more and more online and disruption supply chain were causing continued shortages of some new items.
A report from thredUP and GlobalData earlier this year predicted resale to grow 11 times faster in the apparel industry than the broader retail apparel industry over the next five years, with the second-hand market reaching $ 77 billion. dollars by 2025.
“This younger generation – Generation Z, Millennials – are all a lot more aware of what companies are doing with products and merchandise and things like that,” Shen told PYMNTS.
The idea of buying second-hand is no longer so stigmatized among consumers, he said, “and thus they can get good quality products, durable goods, at lower prices than the market. retail”.
PYMNTS research, conducted in collaboration with LendingClub, showed that 125 million American adults, or 54% of consumers, live on paychecks, including 70% of millennials and 53% of people who earn between 50,000 and 100. $ 000 per year.