Vestiaire Collective, a second-hand fashion marketplace backed by Kering, initiated a crowdfunding campaign aiming to raise at least €1 million (US $1.09 million) from individual investors. The move is part of Vestiaire’s strategy to achieve profitability by the end of the year and potentially pursue an initial public offering (IPO).
Open to individuals over 18 in Europe and the UK, the crowdfunding campaign, priced at €1.78 (US $1.94) per share, values Vestiaire at €1.1 billion (US $1.20 billion). CEO Maximilian Bittner sees this effort as a marketing initiative to involve loyal customers in the company’s growth.
Despite a slowdown in the luxury sector globally, Vestiaire experienced a 25% sales growth on its platform last year, reflecting the increasing trend of consumers buying second-hand fashion. Vestiaire, positioning itself as a marketplace for “desirable” pre-owned fashion, has banned over 60 “fast fashion” brands since November 2022.
Founded in Paris in 2009, Vestiaire aims to achieve profitability by the end of 2024, with a potential IPO as the next step. Kering holds a 5% stake, while Softbank has been an investor since 2021. The crowdfunding, facilitated by Crowdcube, opens on Tuesday, with a subscription phase starting on February 6th.
