Luxury fashion marketplace Tradesy raises $67 million
Tradesy, an online marketplace for secondhand high-end fashion goods, raised $67 million in Series D funding led by Foris Ventures, John Doerr’s family office.
Why it matters: With climate change (and ESG more broadly) solidifying itself as a mainstream concern, companies like Tradesy that help consumers cut down on their consumption and waste are seeing exploding interest.
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“That’s really what we’re doing—to kill fast fashion,” founder and CEO Tracy DiNunzio tells Axios, referring to the trend of apparel brands whose low-priced, quickly produced goods encourage consumers to constantly buy new items.
The big picture: Tradesy is among a number of online marketplace for secondhand apparel, a category that’s seen notable validation from investors recently.
ThredUp went public earlier this year at $1.3 billion market cap, while Etsy agreed to acquire another marketplace, Depop, earlier this summer for $1.6 billion, for example.
What they’re saying: “It’s important not only to look at the price tag but also the resell value,” said DiNunzio of the perception that luxury fashion goods are inaccessible to the average shopper.
Many of Tradesy’s customers cycle through the high-end items they purchase, wearing them for a period of time, then reselling them and buying new ones.
Many shoppers also use Tradesy’s app to look up resell prices when they’re buying brand new items, she adds, touting the company’s pricing tools.
And while it does sell Rolexes at $5,000 a pop, it also sells $70 sweaters, DiNunzio points out. The average clothing order value is only $85, she says. (It’s $160 for shoes, and $600 overall.)
Of note: As part of the round, Jeff Housenbold is joining Tradesy’s board as chairman.
Go deeper: Scaling the low-waste economy
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