The RealReal, a prominent luxury platform based in the US that specializes in selling second-hand goods, has recently made a substantial leap in funding with the closing of a $115 million Series G financing round. This latest round of funding brings the total financing raised by the company to an impressive $228 million since its inception, signaling a significant milestone for the business. The funding was led by PWP Growth Equity (Perella Weinberg Partners), with additional contributions from Sandbridge Capital and Great Hill Partners. Chip Baird, one of the co-founders of PWP, will be joining The RealReal’s Board of Directors as a result of the funding round.
Julie Wainwright, the Founder and CEO of The RealReal, expressed her enthusiasm about the recent funding, highlighting the company’s seven-year journey in transforming the luxury goods buying and selling experience and establishing itself as a frontrunner in the circular economy for luxury goods. The influx of capital from this financing round will enable The RealReal to further expand its physical presence into new markets and enhance its e-commerce fulfillment capabilities to accommodate the increasing supply of luxury goods.
This funding announcement follows a successful year of pop-up stores for The RealReal. In late 2017, the company debuted its first permanent location in New York, a spacious 6,000-square-foot store situated in the trendy SoHo neighborhood. Prior to this permanent fixture, The RealReal experimented with temporary pop-up stores in San Francisco and Las Vegas. The company also unveiled plans to open a flagship store on Melrose Avenue in Los Angeles, extending its physical footprint beyond its existing locations in San Francisco and Manhattan.
The RealReal’s network of consignment stores has now expanded to include major cities such as Chicago, Dallas, Miami, Washington, and Century City (Los Angeles), providing customers with convenient drop-off and pick-up locations for their luxury items. Boasting over 7 million subscribers and a dedicated team of 600 employees, The RealReal amassed revenues of $400 million in 2017. The company operates within the thriving second-hand luxury market, which is estimated to be valued at around $18 billion, competing with other platforms like Vestiaire Collective, High Society, Edit Second Hand, Hewi London, and Rewind Vintage. As The RealReal continues to grow, it solidifies its position as a key player in the sustainable luxury market.
To learn more about The RealReal and its recent funding milestone, visit their official website here. Additionally, for further insights into the luxury resale industry, take a look at this informative article here.
