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Exclusive: LePrix may look to tap the financing pedal

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Apr 12, 2024
Illustration of a dress on a hanger made out of money

Illustration: Sarah Grillo/Axios

LePrix, a B2B wholesale platform for pre-owned luxury items, could seek more financing this quarter to keep pace with growth, CEO Elise Whang tells Axios exclusively.

Why it matters: As demand for secondhand shopping continues to increase, retailers need ways to stay relevant to younger customers and keep up with the times.

What's next: "We're at a pivotal moment where we can really step on the gas and take on these opportunities that are before us with larger partnerships that could actually accelerate the growth of our company," Whang says.

  • The company has a steady pipeline of strategic retail partnerships that could close in the next 90 days, Whang says, and this could increase its forecasted gross merchandise volume by 5x.
  • LePrix plans to invest in its IT infrastructure as well, such as data-driven procurement, demand planning, data analytics and more.

How it works: LePrix doesn't hold any inventory.

  • It works with resale partners in a network of secondhand and vintage stores as well as suppliers that want to sell items between each other and in a broader wholesale marketplace.

Zoom out: Globally, the secondhand apparel market is projected to reach $350 billion by 2028, and online resale is forecasted to more than double to $40 billion by that same period, according to ThredUp's latest resale report.

By the numbers: LePrix has transacted more than $100 million in gross merchandise value since 2020.

  • The company said it's been EBITDA positive since last July and has raised $15 million in total funding to date.
  • LePrix reports over 300 U.S. retail customers.

The latest: The company opened its first office in Tokyo this week, which will serve as a launching pad to other markets, like Southeast Asia, Korea and Taiwan, Whang says.

  • "From there, we can unlock that supply chain and allow retailers from anywhere to source on our site," Whang says.
  • The Bethesda, Maryland-based company also has an office in Paris.

The big picture: Luxury e-commerce as a whole has been hit by shifts in consumer spending.

  • Sourcing has also been an issue, as resale companies rely on consumers to sell their products, and legacy fashion names pull back on partnerships in a quest for more product control.
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