Vestiaire Collective, a global platform for second-hand fashion, has announced the completion of a £154m investment round, backed by Gucci’s owner, Kering, alongside Tiger Global Management, a US investment firm.
The financing also saw existing shareholders including but not limited to the group’s CEO, Max Bittner, Condé Nast, Eurazeo Group, and Bpifrance reinvest in the platform.
The funding follows a year-on-year growth to transaction volume of 100% at Vestiaire, reportedly driven by younger consumers’ growing demand for sustainable fashion.
Bittner said: “The resale sector as a whole is experiencing rapid growth, especially amongst Millennial and Gen Z consumers, which will come to shape the retail landscape of the future.
“We are incredibly excited to welcome Kering and Tiger Global Management, both of which will be instrumental in our mission to build a more sustainable fashion industry and further grow our incredible global community.”
Kering has taken an approximate 5% stake in the company, and will be represented on Vestiaire’s board of directors.
François-Henri Pinault, chairman and CEO at Gucci’s owner, said that “rather than ignoring” the growing trend of pre-owned luxury fashion, Kering aims to “influence the future of our industry towards more innovative and sustainable practices”.
He added: “This fits naturally with our entrepreneurial spirit, our pioneering sustainability strategy, and our modern vision of luxury.”
Founded in 2009, the firm has more recently operated over a 90% year-on-year growth to its membership since 2020.
The collective will use the funding to scale up its technology and data innovation roadmap, with the intentions of triggering change in the industry, empowering “fashion activists,” reducing its environmental footprint, and being an “exemplary company”.