The RealReal, an authenticated luxury consignment retailer, has closed a $115 million Series G funding round. With this round, The RealReal has raised a total of $288 million in equity capital.
“This new round of funding will allow us to expand our brick-and-mortar footprint into new markets, as well as support our growing supply of luxury goods with new e-Commerce fulfillment centers,” said Julie Wainwright, Founder and CEO of The RealReal in a statement. “Over the last seven years, we have re-envisioned the experience of buying and selling luxury goods, and become a leader in the circular economy for luxury goods.”
The total U.S. apparel resale market will grow at a compound annual rate of 13%, from $18 billion in 2016 to $33 billion in 2021, according to a report from Coresight Research. With clothing, shoes and accessories currently making up 49% of total U.S. resale sales, investors are increasingly confident that the business will continue to expand going forward.
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The RealReal operates a brick-and-mortar store in New York City’s SoHo neighborhood and will open a concept shop in Los Angeles on July 31. Additionally, the company opened a 6,000-square-foot pop-up shop in Las Vegas from February to April 2018. ButWainwright wants to open more stores in Manhattan, and has plans to debut more jewelry and watch valuation centers around the country, according to WWD. The Manhattan location sells men’s and women’s designer fashions, fine jewelry, watches, home furnishings, decor and art. Experts ranging from gemologists to authentication specialists are on hand to engage directly with shoppers and consignors (sellers).
The round was led by PWP Growth Equity, the private equity group of Perella Weinberg Partners, with additional participation from new investor Sandbridge Capital and existing investor Great Hill Partners. As part of the investment, Chip Baird, Co-Founder and Partner of PWP Growth Equity, will join The RealReal’s board of directors.
