The RealReal is a consignment store that buys and sells luxury goods. They have just acquired $115 million in Series G funding in order to raise a private equity worth $288 million. There is a very high demand for high-end used fashion goods, and The RealReal is picking up momentum as the demand rapidly rises.
PWP Growth Equity led the round in addition to the investor Sandbridge Capital and Great Hill Partners. Chip Baird, will also be joining the board of directors of The RealReal.
There is no shortage of investors taking notice of and wanting to join forces with The RealReal as used luxury goods are in very high demand at the moment. According to Threadup, online resale is on the rise and is projected to be worth a whopping $41 billion by 2022. That is because millennials are on the hunt for recycled items and well as great bargains. It is also projected that online consignment sites such as The RealReal, Poshmark, and Threadup will account for one-third of closets by the time the year 2017 is here.
The RealReal plans to use the extra cash to solidify its takeover by expanding their physical stores. They also want to expand their growing supply of luxury goods with new fulfillment centers. The company already has a store in SoHo and plans on opening a new one in LA on July 31. Julie Wainwright, CEO of the company, wants to open additional stores in Manhattan and wants to debut more jewelry and watch valuation centers all over the country. The RealReal now has the momentum and the money to really expand and grow over the coming years as the demand for secondhand luxury goods grows.
The RealReal has a good reputation for being extremely thorough and tough when it comes to the validation process that they use to ensure the genuine quality of their products. That is one of the reasons why they have gained the trust and business of so many clients. They are excited to be expanding so substantially and to make themselves more accessible to their clients.