Annually over one trillion dollars is spent on the luxury business. The RealReal has taken notice. This luxury reseller is taking their part in this industry with ever consignment they facilitate. The company began small. Julie Wainwright built her brand from her kitchen table and visiting customer homes. Today, this company is the go to site for luxury consignment clothing, footwear, handbags and accessories with several hundreds of employees in multiple U.S. locations.
Investors are always looking for their next venture. Finally, they have come across the lucrative demand of customers desiring high end fashion items that have been previously owned by another fashion lover. Right now digital spaces of selling fashion is booming, the luxury sector of that is growing rapidly. The online luxury retailer powerhouse has recently raised over one hundred million dollars in funding. This brings the total capital or private equity to two hundred and eighty eight million dollars. PWP Growth Equity led the round of funding. Perella Weinberg Partners and Sandbridge Capital were additional investors. Great Hill Partners is an already an investor in the company. The RealReal will have a new member to its board of directors. A founder of PWP Growth Equity Chip Baird will be joining the luxury reseller’s board.
The amount of investors and hundreds of millions of dollars funded into the company does not surprise many strategists and financial analysts. The marketplace for online luxury retailers is an emerging market that is seeing immense growth. So although The RealReal is only seven years old with still a lot of potential, investors want to get in early and make their profits. Millennials are the shoppers making this market a huge cash cow for investors. The are seeking quality goods that do not necessarily have to be brand new. The RealReal does not own this category entirely to themselves. Thredup and Poshmark are also big names in this space. According to strategists, by 2027 these three giant resellers will own around thirty three percent of closets. The RealReal has a promising future of continuing to bring quality, high end fashion to customers.