There has been a growing demand for high-end used fashion goods, and The RealReal has gotten in on the market. They are a leader in the consignment marketplace and is the go-to place to acquire used luxury items that are authentic.
The RealReal is a California-based consignment store that specializes in authenticated luxury items. They recently acquired $115 million in Series G funding and nearly $300 million in equity capital. It was made possible by the efforts of Great Hill Partners and PWP Growth Equity. Sandbridge Capital was also part of the equation. Chip Baird of PWP Growth Equity will also be joining the board.
The company will use the equity to add more stores as well as up its supply of luxury goods with new e-commerce fulfillment centers. Julie Wainwright is the founder of The RealReal, and she is proud of the strict authentication process that each item they acquire goes through. The company has over 90 in-house authenticators who carefully inspect each item to ensure that it is not a fraud.
The RealReal makes consigning items very convenient as they offer free in-home pickup, drop-off, and direct shipping. Customers can also shop in its physical stores, attend workshops, and meet with experts. The workshops offered reach about authenticity and sustainability. The RealReal staff provides free valuations of jewelry, watches, and handbags at eight of their luxury consignment offices as well.
The recent move will make it possible to bring their innovative and in-demand marketplace to even more consigners and consumers. Many investors are drawn to the seven-year-old consignment business, and according to a recent report made by ThreadUp, they are expected to be worth $41 billion by the year 2022. Their growth is widely driven by millennials who are seeking great bargains and recycling in the best way. The report also found that consignments sites such as ThreadUp and The RealReal are going to make up one-third of all closets by the year 2017. The new funding will help to grow the luxury brand and make it possible to open up more physical sites such as in Manhattan.