Branded resale technology platform Recurate has raised $14 million in Series A funding to power a new suite of services and integrations for its growing roster of brand partners.
Recurate’s platform helps brands compete with peer-to-peer (P2P) marketplaces such as Depop, ThredUP, Tradesy and Poshmark, which typically leave retailers and brands out of the sales equation. Through Recurate, brands can take control of their products’ resale by operating their own P2P marketplaces and offering users store credit or cash in exchange for sales.
Today, taking control over its resale initiatives has become key for brands and retailers to acquire a new segment of customers. According to the company, Recurate clients have found that as many as 50% of resale purchasers are “new-to-brand” and have never purchased directly from the brand’s eCommerce channel.
The new round of funding marks the company’s second-largest financing round and comes just a year later after the platform announced its seed round of $3.25 million. In addition, it comes at a time when sales of resold goods on third-party marketplaces is expected to become a $77 billion industry.
“Recurate provides the logical evolution for this appetite to flow through the brands themselves,” said Yelena Shkolnik, partner at lead investment firm Jump Capital.
“We expect the ease of purchasing and listing goods through brand sites will bring brands many new customers, help them retain existing customers and ultimately bring millions of consumers to the circular economy.”
To ensure that Recurate meets these demands, the company plans to use its new round of capital to streamline its integration process for brands, which includes:
- enhanced data analytics
- solutions that allow brands to resell unsold inventory and monetize unsellable product returns
- authentication and digital ID integrations
- advanced solutions to support vintage sellers
- auctions, repairs and upcycling opportunities
- and image-based product recognition
Former Gap Inc. executive Wilson Griffin and former Retail Industry Leaders Associations executive Adam Siegel founded the company in February 2020 to help brands integrate resale solutions through their websites.
“We are incredibly excited about our Series A funding that will enable us to broaden our suite of offerings and onboard more partners,” said Griffin in a statement to Retail Bum.
“With new services like selling lightly used returns or warranty items through resale, branded recommerce will further cement itself as the preferred option for today’s consumers. There is a tremendous opportunity for brands to attract greater participation and leverage resale as a means to acquire customers and grow top-line revenue.”
Today, Recurate works with over 40 brands in the fashion, accessories, outdoor, and footwear categories, including Mara Hoffman, Frye, La Ligne and Re/Done.
The new investment brings Recurate’s total funding to over $17.5 million. Some of the company’s other investors include Gradient Ventures, XRC Labs, Victress Capital, Revolution’s Rise of the Rest Fund, AngelList Early-Stage Quant Fund, and executives from Brooks Brothers, Chubbies, and Klaviyo, among others.