Yaga, a South African online resale fashion platform, is exploring expansion opportunities in the Middle East and North Africa after raising €4 million (R80 million) in a pre-Series A global funding round.
According to a statement, the investment was secured from Specialist VC, H&M Group Ventures, Trind Ventures, Start-up Wise Guys and a group of angel investors.
This latest funding reflects investor confidence in both the sector and the Yaga team, says the company.
According to the fashion marketplace, resale platforms are no longer niche; they’re becoming mainstream shopping destinations. The apparel resale market was forecast to grow by roughly $150 billion from 2023 to 2028, as consumers look for cheap and sustainable clothing, according to Statista.
Yaga is a user-friendly, pre-loved fashion buying-and-selling platform with an escrow-based payment system and localised logistics to protect buyers and sellers. The platform has built a strong presence in SA, where it dominates the online fashion resale market.
“With the new funding, Yaga is exploring expansion opportunities primarily in the Middle East and North Africa region,” saysAune Aunapuu, CEO and founder of Yaga.
“The funding will also support further team growth and the development of existing markets, including South Africa.The number of Yaga users has grown to exceed two million and the site gets more than 12 million visits each month.”
According to Aunapuu, Yaga has doubled in size annually, reaching a €50 million (R1.1 billion) gross merchandise value run rate with a 25-person team and €3.2 million (R64 million) funding raised prior to this round, highlighting the strong market demand and efficiency of Yaga’s model.
“Items on Yaga are typically 50% to 80% cheaper than new items, making fashion more accessible,” says Aunapuu.
“In addition, more than six million fashion items have been given a new life through Yaga over the last few years, promoting sustainable fashion and reducing textile waste. Yaga also opens economic opportunities in the second-hand fashion industry: over €80 million has been earned by sellers on Yaga globally.”
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for pre-loved fashion – one of the fastest-growing business sectors within the fashion industry,” says Nanna Andersen, MD of H&M Group new growth and ventures.
“Their presence on the African continent is also a strong complement to H&M Group’s existing second-hand initiatives in other parts of the world.”
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