Investors have clearly picked up on consumers' growing appetite for high-end used fashion goods, because the digital luxury consignment space is flush with venture capital. On Wednesday, The RealReal announced that it has raised a whopping $115 million in Series G funding, bringing the total raised in private equity capital to $288 million, according to a release from the brand.
The round was led by PWP Growth Equity, the middle market 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.
"Julie and her team have created an industry-leading company that is redefining the consignment marketplace and how consumers acquire luxury goods," said Baird in an official press statement. "With a continued move towards e-commerce and the rise of second-hand good purchases, The RealReal is uniquely positioned to benefit from these shifting trends. We are excited to partner with the company as they work to bring their innovative marketplace to even more consumers and consignors."
It doesn't come as a surprise that investors are attracted to the seven-year-old, San Francisco-based consignment company: According to a recent report compiled by ThredUp, online resale thriving and is expected to be worth $41 billion by 2022. Its growth is largely driven by millennials who are seeking quality bargains and champion recycling. The report also noted that online consignment sites, like The RealReal, Thredup and Poshmark, will own nearly one-third of closets by 2027.
So how will The RealReal use this influx of cash to solidify its closet takeover within the next decade? "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 The RealReal CEO and Founder Julie Wainwright in a press release.
The company already operates a brick-and-mortar store in SoHo, and will open a concept shop in LA on July 31. According to WWD, Wainwright wants to open more stores in Manhattan, and has plans to debut more jewelry and watch valuation centers around the country. At this point in the game, and with such a generous chunk of change, the sky is the limit for this purveyor of fancy secondhand goods.