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Despite the troubles related to Covid-19 and the prospect for a catastrophic economic crunch, the luxury handbag resale platform announced on Thursday, May 14, that it has raised $15 million in a series D financing, bringing the total funding for the New York-based start-up to $68 million. A fund-raising that goes out of tune with the difficulties currently faced by the luxury market and the retail trade.
Although the coronavirus pandemic has put a halt to retail sales in the United States and around the world, this does not prevent the second-hand luxury goods platform from raising funds.
An investment of $15 million …
While its nine stores in New York, Los Angeles and Miami remain closed due to health measures taken to contain the effects of the crisis, the New York-based platform for the purchase and sale of luxury handbags raised $15 million in Series D funds.
Rebag’s investor, Novator Partners LLP, a London-based private equity firm founded by Icelandic entrepreneur Thor Bjorgolfsson, led the investment cycle, citing “the tremendous growth potential of the resale market”. Novator partner Birgir Ragnarsson told him that Rebag’s unique position combined “luxury expertise” with “innovation and cutting-edge technology“.
Another US investor, General Catalyst Partners LLC, also participated.
A total of $15 million in fresh capital was raised, bringing the total funding for the start-up to $68 million, according to company statements on Thursday 14 May.
… Despite a strong slowdown in the luxury industry
This fundraising of several million dollars comes in the midst of the Covid-19 crisis, at a time when several studies have announced a collapse of the luxury market in the first quarter after the suspension of tourist activity and the closure of shops around the world.
According to Bain & Company estimates, the luxury market is expected to contract by 25-30% in 2020, although another analysis of the luxury sector conducted in April by the McKinsey consulting firm noted a potential appetite for “revenge spending” with “handbags and small leather goods selling better than ready-to-wear apparel during the crisis.”
Despite the challenges facing the resale and retail market, Rebag intends to use the funds wisely in order to restart its growth and continue its online development. The company, founded in 2014, is planning to expand its technological development efforts and improve its e-commerce tools.
The online retailer also plans to use the money to hire more staff and expand its store network, although its plans to open additional stores this year have had to be revised downwards because of the situation.
CEO Charles Gorra even said that the COVID-19 outbreak made Rebag’s business model and growth initiatives even more relevant: “We offer luxury products at a very discounted price,” he said. “I think this is going to be very important in a recessionary environment because full price items can become very difficult for many people to obtain.”
In anticipation of this, the company said it has “intensified” its cleanliness efforts and “expanded its bag packaging guidelines” for post-coronavirus.
Read also > Luxury : Vestiaire Collective raises €59 million to develop tomorrow’s fashion
Featured photo : © Rebag / Facebook
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Despite the troubles related to Covid-19 and the prospects of an economic recession, the luxury handbag resale platform announced yesterday Thursday, May 14 that it has raised $15 million in a series D financing, bringing the total funding for the New York-based start-up to $68 million. A fund-raising that goes out of tune with the difficulties currently faced by the luxury market and the retail trade.
Although the coronavirus pandemic has put a halt to retail sales in the United States and around the world, this does not prevent the second-hand luxury goods platform from raising funds.
An investment of $15 million …
While its nine stores in New York, Los Angeles and Miami remain closed due to health measures taken to contain the effects of the crisis, the New York-based platform for the purchase and sale of luxury handbags raised $15 million in Series D funds.[/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fabonnements-et-newsletter-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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Despite the troubles related to Covid-19 and the prospects of an economic recession, the luxury handbag resale platform announced yesterday Thursday, May 14 that it has raised $15 million in a series D financing, bringing the total funding for the New York-based start-up to $68 million. A fund-raising that goes out of tune with the difficulties currently faced by the luxury market and the retail trade.
Although the coronavirus pandemic has put a halt to retail sales in the United States and around the world, this does not prevent the second-hand luxury goods platform from raising funds.
An investment of $15 million …
While its nine stores in New York, Los Angeles and Miami remain closed due to health measures taken to contain the effects of the crisis, the New York-based platform for the purchase and sale of luxury handbags raised $15 million in Series D funds.[/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fabonnements-et-newsletter-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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