Vestiaire Collective announced today that is has raised €59 million in venture capital as the Paris-based startup accelerates its expansion in the U.S. and Asia.
New investors in the latest round include Korelya Capital, Fidelity International-managed funds, Vaultier7, Cuit Invest. Previous investors also participated, including Eurazeo (Eurazeo Growth and Idinvest Venture funds), Bpifrance, Vitruvian Partners, Condé Nast, and Luxury Tech Fund.
The fundraising is the latest sign that consumers are finding circular economy copanies to be increasingly attractive, both in terms of quality of products and pricing. The company is betting that the coronavirus is going to make consumers even more conscience of the impact of their purchasing habits.
“I’m personally convinced that this unprecedented crisis will not only make us question where we make our purchaes, but how we do it,” said Max Bittner, CEO of Vestiaire Collective, in a statement. “Vestiare was born during the 2008 cirsis, and today demonstrates that it can help people get the most out of their goods, but also access fashion in a sustainable and responsable way.” Bittner also personally invested in the round.
Founded in 2009, Vestaire now has 9 million members and operates in 90 countries. It offers more than 1 million items on its website. While the company originally had members send in items to a warehouse to be a verified, it has been shifting more to a direct sales models.
Last year, the company launched “Shipping Direct” to allow sellers to send items directly to buyers. That model now accounts for 50% of its sales in Europe. The company will use the latest funding to expand this new service to the U.S. and Asia later this year.