Yaga, a South African online resale fashion platform, has raised R80-million (€4-million) in a pre-Series A global funding round, securing investment from Specialist VC, H&M Group Ventures, Trind Ventures, Startup Wise Guys, and a group of angel investors.
According to the company, resale platforms are no longer niche but are becoming mainstream shopping destinations. Last year, the global second-hand apparel market grew by about 15% reaching $227-billion, and it is forecast to nearly double to $367-billion by 2029.
Yaga is designed to be a safe and user-friendly pre-loved fashion buying-and-selling platform with an escrow-based payment system and localised logistics to protect buyers and sellers.
“Items on Yaga are typically 50-80% cheaper than new, making fashion more accessible,” says Aune Aunapuu, Yaga CEO and founder. “In addition, more than 6-million fashion items have been given a new life through Yaga over the last few years, promoting sustainable fashion and reducing textile waste.
“Furthermore, Yaga also opens economic opportunities in the second-hand fashion industry: over €80-million has been earned by sellers on Yaga globally.”
At the same time, Yaga has doubled in size annually, reaching a €50M+ GMV run rate with a 25-person team and €3.2-million funding raised prior to this round.
Yaga is attracting attention from international investors in this pre-Series A funding round led by Specialist VC, with participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and a group of angel investors.
Nanna Andersen, MD of H&M Group’s business area new growth and ventures, says: “We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for pre-loved fashion – one of the fastest-growing business sectors within the fashion industry. Their presence on the African continent is also a strong complement to H&M Group’s existing second-hand initiatives in other parts of the world.”
Aunapuu says: “Second-hand fashion is no longer a trend, it’s becoming the first choice for millions of people who want both affordability and sustainability. Our growth in South Africa proves that this is a global movement. With this funding, we will strengthen our existing markets, explore new ones – including the Middle East and North Africa, and continue to build the sustainable fashion marketplace of the future.”
* Visit the Yaga website here.