PrivCo Logo

The Future is Resale

The Future is Resale
July 1, 2021

The Daily Stack is a daily private market insights newsletter by PrivCo, a private company intelligence platform. Read our previous insights.
If you have friends who would enjoy reading this newsletter, please forward this email to them.

Today we’re looking at the industry known as resale & consignment. With a younger generation driving demand, private companies are proving that one person’s trash is another person’s treasure.

Where the market has been

Several companies come to mind for consignment, primarily in the luxury fashion market. The RealReal was founded in 2011 by e-commerce expert, Julie Wainwright, who led the company through 8 funding rounds before going public in 2019. Rebag offers consignment for luxury handbags and has developed a technology that identifies items by image and creates instant price quotes for resellers. Buffalo Exchange is a popular and longstanding reseller, with 29 stores across the U.S., and a customer base that enjoys the affordability and original selection.

                                                                                       Image by ThredUp

Where the market is going

Treet and Trove are two companies trying to cut out the middleman by giving brands the chance to own their own resale operations. Say you have a Patagonia jacket that no longer fits. Trove helps Patagonia reach out to its customers to let them know they can sell the jacket back to the company, who will authenticate and refurbish before recirculating to consumers. These two companies offer brands an opportunity to enter the resale market and promote a more sustainable brand of loyal customers.

Second-hand generation

High school used to be the site of brand-name envy among kids just wanting to fit in. But a shift toward secondhand, particularly among Gen Z, has taken root. Etsy recently acquired Depop, the Gen Z app for reselling, paying $1.9BN cash earlier this month. Etsy cited a desire to own a piece of Depop's younger, digitally native consumer base, with 90% of users under 26.

Trashion is the future

Fashion is now the second greatest polluter in the world with the number of garments increasing as quality diminishes. The resale industry is a $28BN industry today that is expected to eclipse fast fashion by 2029. For more examples of successful companies in the industry, just look to Poshmark which went public in late-2020, and Thredup, currently valued at $650MM.

Whoopsie in the NYC Mayoral race

Voters now casting doubts after 125K test ballots were counted Tuesday night

Instagram building Twitter copycat
A reverse engineer reveals the in progress "exclusive" feature
Since last week, PrivCo has added:

631 Companies | 238 Funding Activities | 99 M&A Deals

Funding & Deal Highlights:

Gympass raises $220MM from SoftBank Vision Fund

Software & Internet Services • Equity • New York, NY

ShipBob raises $200MM from Bain Capital

Logistics Services • Round E • Chicago, IL

Tapcart raises $50MM from Left Lane Capital

Software & Internet Services • Round B • Santa Monica, CA

Side raises $50MM from Tiger Global 

Real Estate • Equity • San Francisco, CA

Bowery Valuation raises $50MM from Goldman Sachs

Real Estate • Round B • New York, NY

HealthVerity raises $100MM from Durable Capital 

Software & Internet Services • Round D • Philadelphia, PA

Oros Apparel raises $14.5MM from Elizabeth Street Ventures & Enlightenment Capital

Apparel, Footwear & Accessories • Round A • Portland, OH

Katalon raises $27MM from Elephant Partners 

Software & Internet Services • Round A • Atlanta, GA

VRChat raises $80MM from Anthos Capital

Software & Internet Services • Round D • San Francisco, CA

Edge Delta raises $15MM from Menlo Ventures

Software & Internet Services • Round A • Seattle, WA

AtomicJar raises $4MM from BOLDstart Ventures

Software & Internet Services • Seed • Newark, NJ

Gliknik raises $11.5MM from First In Ventures

Pharmaceuticals • Seed • Baltimore, MD

Lessen raises $35MM from Fifth Wall Ventures

Software & Internet Services • Round A • Scottsdale, AZ

Discord acquires Ubiquity6 

VR Software & Internet Services • Acquisition • San Francisco, CA

Electric Last Mile Solutions merges with Forum Merger III Corp. for $379MM

Vehicle Manufacturers • Merger • Troy, MI

LLR Partners gives growth capital to WizeHive

Software & Internet Services • Growth Capital • Conshohocken, PA

Warburg Pincus acquires Exeter Finance 

Consumer Finance • Acquisition • Irving, TX

Forward to a Friend Forward to a Friend
Not a subscriber yet? Sign up here!
Have an interesting topic you want us to include. Let us know!
Copyright © 2021 PrivCo Media, LLC. All Rights Reserved.
Unsubscribe | | Contact Us
PrivCo Logo

© 2024 PrivCo Media, LLC


HomeSign inContactPricing