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.
- "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