Vestiaire Collective, a digital platform for buying and selling second-hand fashion, has raised a new €178 million financing round which brings the company closer to a $1 billion valuation.

The round was led by global French luxury group Kering and US investment firm Tiger Global Management.

Existing shareholders include Condé Nast, Vestiaire Collective’s chief executive Max Bittner, Bpifrance, the Eurazeo Group, Korelya Capital, Vitruvian Partners, and funds managed by Fidelity International.

Vestiaire said the platform’s transaction volume grew over 100 per cent year-on-year. The company added that this financing round gives Vestiaire Collective unicorn status with a valuation of around £1 billion and positions it for its next growth cycle.

Vestaire went on to highlight that the used fashion sector has experienced rapid growth over the last three years with further acceleration during the pandemic, claiming that this has been predominantly driven by younger consumers' focus on sustainability and a growing trend towards “social shopping”.

Vestaire predicted the amount of second-hand pieces in people’s closets is to grow from 21 per cent in 2021 to 27 per cent in 2023, with the total value of the secondhand sector forecasted to be over $60 billion by 2025.

Gucci owner Kering said the investment, representing a 5 per cent stake, illustrates its support for new business models and its willingness to embrace emerging market trends.

“Pre-owned luxury is now a real and deeply rooted trend, especially among younger customers,” said François-Henri Pinault, chairman and chief executive of Kering. “Rather than ignoring it, our wish is to seize this opportunity to enhance the value we offer our customers and influence the future of our industry towards more innovative and more sustainable practices.”

He added: “This fits naturally with our entrepreneurial spirit, our pioneering sustainability strategy, and our modern vision of Luxury.”

Maximilian Bittner, Vestiaire Collective’s chief executive said: “This latest round of investment confirms the incredible trajectory of Vestiaire Collective, founded during the 2008 crisis, the model has clearly demonstrated its ability to continue to thrive during challenging conditions.”

“The resale sector as a whole is experiencing rapid growth, especially amongst Millennial and Gen Z consumers, which will come to shape the retail landscape of the future.”

He added: “We are incredibly excited to welcome Kering and Tiger Global Management, both of which will be instrumental in our mission to build a more sustainable fashion industry and further grow our incredible global community."

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