Dubai-based high end resale marketplace The Luxury Closet has announced it closed an $8.7 million growth funding round led by Middle East Venture Partners (MEVP), Wamda Capital, Precinct Partners, Tech Invest Com, Saned and Equitrust.
The start up also revealed it expanded its stock base to 20,000 and is adding products worth over $5 million on a monthly basis.
Through its new funds, it said it plans on expanding its supply with exclusive sellers in the Middle East and build its global buyers network.
“We see a massive wave building up in how consumers perceive and purchase luxury, one that is going to change the luxury industry forever. The Luxury Closet is proud to be leading the change of adding sustainability, and accessibility to the world of luxury in the region”, said CEO and founder Kunal Kapoor.
Over 60 percent of The Luxury Closet’s sales come from top end luxury brands such as Louis Vuitton, Chanel and Rolex, who do not discount their merchandise. The firm offers consumers a chance to buy the items pre-owned at a discount averaging 60 percent from retail.
There is an estimated $500 billion worth of luxury goods sitting in closets globally, according to consulting firm Bain and Company, while analysts predict the MENA luxury market will be worth over $12 billion by 2021. They suggest that the size of the second-hand vertical alone can be upwards of $900 million.
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