Yaga, a local online resale fashion platform, has raised €4m (approximately R80m) 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.
This latest funding reflects investor confidence in both the sector and the Yaga team.
Resale platforms are no longer niche; they’re becoming mainstream shopping destinations. Last year, the global second-hand apparel market grew by about 15% reaching $227bn, and it is forecast to nearly double to $367bn by 2029.
At the centre of this global shift is Yaga, 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.
Yaga has built a particularly strong presence in South Africa, where it dominates the online fashion resale market.
“Items on Yaga are typically 50% to 80% cheaper than new, making fashion more accessible,” explains CEO, Aune Aunapuu.
“More than six million fashion items have been given a new life through Yaga over the last few years, promoting sustainable fashion and reducing textile waste. Yaga also opens economic opportunities in the second-hand fashion industry: over €80m has been earned by sellers on Yaga globally.”
Yaga’s model is proving to be both efficient and to have strong market demand. The brand has doubled in size annually, reaching a €50M+ GMV run rate with a 25-person team and just €3.2m funding raised prior to this round.
“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,” says Nanna Andersen, managing director of H&M Group’s business area New Growth & Ventures. “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.”
“Second-hand fashion is no longer a trend, it’s becoming the first choice for millions of people who want both affordability and sustainability,” says Aunapuu.
“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.”
Originally published on Bizcommunity