SAN FRANCISCO, June 6, 2017 /PRNewswire/ -- The RealReal, the leader in authenticated luxury consignment, today announced it has closed a $50 million growth equity financing from private equity firm Great Hill Partners, bringing the company's total funding to $173 million. Michael Kumin, Managing Partner of Great Hill Partners, will join The RealReal's Board of Directors.
The new funding will be used to continue scaling the company's operations and category expertise, and to expand its Luxury Consignment Offices and retail concepts. The RealReal is changing the way people shop as they now carefully consider the resale value of luxury items before buying new items and the company has also become a key driver for luxury brands. In 2017 alone, The RealReal is expected to pay consignors nearly $300 million from the resale of their luxury items, the majority of which, they will spend back in the primary market, continuing the luxury lifecycle.
"Six years in, The RealReal continues to expand in exciting ways and this incremental capital will be instrumental in supporting the business and our continuous growth," said The RealReal CEO and Founder Julie Wainwright.
"The RealReal has established itself as an innovator in the luxury category delivering significant value to both consignors and buyers," said Michael Kumin, Managing Partner of Great Hill Partners. "We are excited to work with Julie and The RealReal's talented management team, leveraging Great Hill's experience in helping scale leading ecommerce companies."
The RealReal has successfully disrupted the traditional consignment model by bringing the experience into a digital marketplace that focuses on trust, rapid and consistent sell-through, and great service. Founded in 2011, The RealReal is a leader in the circular economy, with 5 million buyers and consignors with 4 million items sold across all luxury categories.
Investment bank Ohana & Co. served as The RealReal's financial advisors in the transaction.
About The RealReal
The RealReal is the leader in authenticated luxury consignment with a certified expert inspecting every single item. The company has reinvented the luxury resale market and changed the way people think about and consume luxury goods. The RealReal provides the largest selection of pre-owned authenticated luxury items including women's and men's fashion, fine jewelry, watches, fine art, and home. Consignors earn up to 70% of the sale price and items sell quickly. The company operates Luxury Consignment offices in six US cities that offer free fine jewelry and watch valuations from certified gemologists, as well as white glove consignment service. The RealReal is a leader in the circular economy and an innovator in sustainable luxury.
SOURCE The RealReal