With Vestiaire Collective's New Funding, Investors Bet on Resale's Post-Pandemic Strength

Investors will still loosen their purse strings for used alligator purses. Luxury resale platform Vestiaire Collective said Monday it raised $64.2 million in a funding round that closed this month.

Where the funding’s going: Expansion both geographic (to Japan and South Korea) and logistical (to grow its direct shipping capabilities).

A not-so-unlikely investment

Somehow, luxury resale hasn’t slowed down during the pandemic. According to BoF…

• Vestiaire Collective had its biggest sales day ever last week.
• In Europe, its daily sales are 20% higher than they were pre-pandemic.
• Competitor Fashionphile logged its biggest promotion-free sales day last week.

Investors have reason to believe the streak could continue at Vestiaire Collective, even if discretionary spending declines overall. Its model folds three accelerating retail trends—e-commerce, sustainability, and value—into one pretty package.

Another angle: The pandemic may force luxury brands to get off their high heels and collab with resale platforms. Resellers can provide designers with much-needed liquidity by accepting their unsold goods.

• Vestiaire Collective told BoF it’s been approached by luxury brands that want to partner up; The RealReal also said it’s had a surge in luxury requests for direct sales.