Resale technology platform, Trove, has secured $77.5 million in Series D funding, raising its total investment valuation to $122.5 million to date.
The company plans to use the funding to improve its technology and logistics infrastructure, grow its business in the luxury sector and across the European market, and expand its brand partnerships. The startup currently works with several retail heavyweights such as Eileen Fisher, Levi’s, lululemon, Nordstrom, Patagonia and REI.
Trove’s platform helps retail brands such as REI better control their recommerce channels, gain more control over their customer relationship, generate additional revenue and drive sustainability by increasing the lifespan of their products.
The funding round was led by G2 Venture Partners and supported by Bank of Montreal, Capital One Ventures, Commerce Ventures, Wellington Management and all of Trove’s existing board investors.
“Consumer demand for resale is soaring and premium brands know it’s now a strategic imperative to control their brand and stay close to their customers by owning their trade-in and resale channels instead of handing them over to third-party marketplaces,” said Andy Ruben, CEO of Trove. “We’re thrilled to join forces with this group of prestigious investors to accelerate our expansion efforts and enable more brands and retailers to build successful resale channels that help them deepen their relationships with customers and reduce their environmental impact.”
Trove’s move to raise funding for scaling its business comes at a time when consumers are increasingly choosing to participate in the circular economy by purchasing previously worn clothes and accessories. The demand is so high that recommerce is expected to account for 14 percent of the apparel, footwear and accessories market by 2024, or roughly $60 billion, up from about 7 percent in 2020, according to research from Cowen.