With this new round of funding, the platform specializing in second hand is welcoming new investors such as the luxury group Kering and the American fund Tiger Global Management. A strategic step for Vestiaire Collective, which intends to step up innovation and the deployment of its vision of circular fashion.
The second-hand fashion sector has experienced rapid growth for three years, which accelerated further during the pandemic. In this perspective of strong growth, the Vestiaire Collective site has just finalized a fundraising of 178 million euros from the French luxury group Kering (KER.PA) and the American investment company Tiger Global Management.
The historic shareholders, Maximilian Bittner, CEO of Vestiaire Collective, Bpifrance (Large Venture), Condé Nast, the group Eurazeo (Eurazeo Growth and Idinvest Venture) (RF.PA), some of the funds managed by Fidelity International, Korelya Capital (backed by NAVER), Luxury Tech Fund (LTF & Cuir Invest) and Vitruvian Partners are also reinvesting.
The arrival of new shareholders who are Dry and Tiger Global Management confirms the full potential of the company. Investing in Vestiaire Collective is a strategic choice for Kering, as explained by François-Henri Pinault, Chairman and CEO of the group: “Second-hand luxury is now a real and deep trend, especially among young consumers. Rather than ignoring it, we want on the contrary to seize this opportunity to continue to improve the services offered to our customers and to orient the future of our sector towards more innovative and more sustainable practices. This fits naturally into our entrepreneurial culture, our pioneering sustainable development strategy and our modern vision of Luxury ”.
This new fundraising will allow Vestiaire Collective, the world’s leading second-hand platform, to accelerate its roadmap in terms of technological innovation and data science, to deploy its vision of circular fashion, and to boost strategic developments in the fashion industry.
As part of its sustainable development plan, the company has highlighted 4 pillars of innovation on which it wishes to focus its action. First of all, that of supporting the change in luxury fashion thanks to the “Brand Approved” service. A service that according to Maximilian Bittner, CEO of Vestiaire Collective, “Aims to help first-hand fashion players to challenge their linear business models and embrace circularity by inviting their customers to buy better and extend the life of their wardrobe”. First brand to launch this new service, Alexander McQueen (Kering group) will propose through its page « Brand Approved » a range of ready-to-wear, bags and shoes.
Vestiaire Collective also wishes to develop its “Fashion Activist” community and give it the means to act through the “Follow the Leaf” program.. As Maximilian Bittner explains, the ‘Fashion Activist’ badge was launched at the end of 2020 with the aim of encouraging more people to take an active role in the fashion industry, buying and selling more second-hand clothes “. As for the “Follow the Leaf” program, it aims to help members “To make the most sustainable choices, including buying from sellers who are in their own market. Overall, the platform has seen an increase of + 96% per year in the number of registrations and + 104% per year in the number of orders, which is testament to a positive change in behavior within the community ” .
The company also aims to achieve carbon neutrality by 2026 and obtain B-Corp certification, a demanding label that certifies private companies engaged in business for good.
Thanks to this fundraising, Vestiaire Collective is joining the very exclusive “Licornes” club. A source of pride for the group founded in 2009 by two women, Fanny Moizant and Sophie Hersan and a strong signal sent to the entrepreneurial ecosystem. Asked about it, Maximilian Bittner sees in this new stage “A testament to the hard work that everyone has provided over the years, as well as a strong sign of confidence in the strength of the model that Fanny and Sophie have built. It clearly demonstrates the importance of female entrepreneurship in developing and driving new innovative business models for the 21st century. Today, women represent 60% of our workforce. Supporting the empowerment of women in business is extremely important to us, and we have launched a dedicated task force on this in 2020 to move the agenda forward. I hope that the lasting success of Vestiaire Collective and other women-founded businesses will inspire other women to take the plunge and follow their passion ”.