French resale company Vestiaire Collective announced on Tuesday the acquisition of Tradesy, an American pioneer in the fashion resale industry. Terms of the agreement were not disclosed, but the companies said in a statement that by joining forces, they “will dramatically increase the size and reach of their peer-to-peer marketplaces, directly benefiting their sellers and buyers”. The combined company will have “a community of 23 million members, a catalog of 5 million items, and a gross market value of more than $1 billion,” according to Vestiaire and Tradesy, which say customers and sellers, similarly, “will benefit significantly from the business alliance.”
“In recent years, Vestiaire Collective has grown at an accelerated pace in the United States, which has become its largest market,” the company said on Tuesday, noting that “in particular, since the start of 2022, [it] increased its gross market value in the United States at a rate of 75% year over year. As such, the decision to consolidate Tradesy into its operations will undoubtedly help expand Vestiaire’s footprint in the US market and “unlock strategic local-to-local transactions.” In order to “best serve its expanded customer base and continue to position trust at the heart of its business model”, Vestiaire says it plans to open a new authentication center in the Los Angeles area (its fifth authentication at the global level, and the second in the United States).
The deal — the largest acquisition in the space after Etsy bought Depop for $1.62 billion in June 2021 — comes as cash is pouring into the secondary market (both from the perspective of the investment and consumption) and in light of expected consolidations, as established players like Rebag, The RealReal, Vestiaire, StockX and others are battling for market share in the luxury resale space, that Bain & Co. was valued at nearly $40 billion at the end of 2021, a 65% increase from 2017. Bain projects that the second-hand luxury market “may continue to rise” and continue to outpace the market for new products if brands address these issues.
Los Angeles-based Tradesy, which operates a peer-to-peer online resale marketplace for buying and selling women’s fashion and accessories, raised $67m in a Series D in September 2021, bringing its total funding at the time to $145 million. . Also in September, Vestiaire raised 178 million euros ($209 million) in a funding round that included the participation of two new investors, SoftBank Group Corp and Generation Investment Management, bringing its valuation to 1, $7 billion and its total funding to date at $663.3 million. . Before that, in a March 2021 round led by Gucci owner Kering and US investment firm Tiger Global Management, Vestiaire brought in $216 million in funding, along with existing investors including its CEO. Max Bittner, the parent company of Vogue Condé Nast, and the Eurazeo group, among others.
Maximilian Bittner, CEO of Vestiaire Collective, and Fanny Moizant, Founder and President of Vestiaire Collective, will continue in these roles for the combined company, while Tracy DiNunzio, Founder and CEO of Tradesy, will become CEO of the combined US operations. .