The recent round follows a strong year driven by technological advances and consumer interest within the secondhand category. In fact, in just the last two years, the preference for shopping on secondary markets such as ThredUp, The RealReal, and Poshmark has surged across all generations, with baby boomers increasing their utilization by 56%, Gen X by 35% and millennials by 33%. Gen Z consumers lead all other groups at 44%.
“We believe that the luxury resale space is still in its early innings. Rebag has carved out a unique approach that will facilitate its massive scaling,” said Birgir Ragnarsson, Managing Partner of Novator.
Rebag plans to use its funding to fuel innovations such as its Clair Technology Suite, which has been designed to bring transparency to the luxury resale industry. The funds will also be used to accelerate growth, such as scaling its tech-enabled brick-and-mortar business.
“Since the company’s inception, our vision has been to fuel the circular economy and create further transparency in the resale market,” says Charles Gorra, founder and CEO of Rebag.
“This latest round of funding will allow us to further develop our technology and launch features that democratize access to information and create an ecosystem that benefits consumers and retailers alike.”
Rebag noted that in the last 12 months, the platform has maintained its high growth trajectory, experiencing 4x growth in new categories such as fine jewelry and watches since its category expansion in 2020. This growth came as a result of the company’s launch of Clair AI and Clair Trade.
The news follows the release of the company’s 2021 Clair Report, which is a consumer resource that maps shifts within the luxury market pertaining to brand value and pricing trends. The latest report revealed that Hermès handbags tend to retain the highest value in the resale market at 90%, while Louis Vuitton is noted to keep 80% of its retail value.
The round was led by private equity firm Novator, with participation from existing investors, including General Catalyst.