The Luxury Closet raises $ 14 million for its expansion
Dubai-based online marketplace The Luxury Closet has raised $ 14 million to expand operations worldwide amid an increase in coronavirus-induced online sales and demand for recycled fashion.
The round table was led by GMP Investments, the company said on Sunday.
Other funders include Dubai’s HB Investments, Saudi Arabia’s Nazer Group, Middle East Venture Partners, and MLM Investment Company.
Founded in 2012, The Luxury Closet resells luxury products in 85 countries on its platform.
“The raised capital will accelerate the already robust global growth of The Luxury Closet as the company prepares to expand its presence in markets outside the United Arab Emirates and implement a clear strategy … in the international resale market of high-end luxury goods, ”said The Luxury Closet. .
Online shopping became more popular after governments around the world introduced movement restrictions to stop the spread of the Covid-19 pandemic.
Retail companies have strengthened their digital operations and realigned their businesses after the start of the pandemic.
E-commerce sales in the Mena region are expected to triple from $ 8.3 billion in 2017 to $ 28.5 billion next year, according to a study by Bain & Company and Google.
“Resale is the future of shopping. We anticipate that one in six transactions will be second-hand by the end of the decade, ”said Kunal Kapoor, Managing Director and Founder of The Luxury Closet. “This marks a paradigm shift in consumer choice and in the fashion and retail industry value chain. What excites us the most is leading the industry towards a more sustainable and environmentally friendly future ”.
Middle East Venture Partners, which focuses on Middle Eastern start-ups, has supported The Luxury Closet through every round of funding.
“Being eco-friendly is so important to us as a family and organization, and The Luxury Closet advocates this by recycling luxury fashion,” said Mona Kattan, president of HB Investments.
“Having a platform that allows us to resell and purchase affordable luxury items is so important to us as it opens accessibility to more people and also reduces the incentive to buy fakes. “
Awad Capital, a company regulated by the Dubai Financial Services Authority, acted as the market’s financial advisor during the funding cycle.
Drake Star Partners, a global technology-focused investment bank, also supported the online marketplace in the transaction.
Mena-region start-ups secured $ 1.03 billion in funding last year, 13% more than in 2019, according to data platform Magnitt.