Investors have noticed the sweeping, increasing hunger of consumers wanting high-end fashion products. This epiphany of sorts is mainly due to the increasing participation of venture capitalists in the luxury consignment space. The RealReal announced on Wednesday, that they managed to raise 115 million dollars and a series G funding campaign. As a result, The RealReal’s total private equity capital was elevated to 288 million dollars stated in a recent release.
PWP Growth Equity (Perella Weinberg Partners middle market equity group) led the charge for the series G funding campaign. In addition, both Great Hill Partners (current, existing investor) and Sandbridge Capital (new investor) participated in the series G funding campaign. Further, Chip Baird (PWP Growth Equity’s co-founder) investment provision(s) afford him to now serve on the RealReal’s board of directors.
Baird stated that Julie and her team have cultivated and industry-leading consignment organization and has reposition the consignment marketplace by reconfiguring how consumers obtain luxury products. In addition, The RealReal has the unique differential which allows them to be the beneficiary of current, shifting trends which clearly indicate the new movement towards consumer acquisition of second-hand goods. Baird is most definitely happy to partner with The RealReal, because of their innovation in the second hand market place and he suspects that there will be an increase and the amount of co-signers and consumers.
Thredup recently assembled and released a report which states that the resale marketplace has an expectation to be worth approximately 41 billion dollars by the year 2022. Millennials are the driving force behind this massive growth, because they are very much behind the concept of recycling and at the same time everyone loves a good bargain especially if its a luxury item. In addition, the report mentioned Poshmark, Thredup, The RealReal and other online consignment sites which drew attention and interest to the recent interest in the series G fundraising campaign. Further, the report indicated that the three companies have a high probability of only one third of closets by the year 2027.
With the recent success of the series G fundraising campaign, Julie Wainwright (The RealReal’s CEO) plans to increase they’re brick and mortar footprint in other marketplaces and enhance the support of luxury products by providing more e-commerce fulfillment centers.