SAN FRANCISCO, April 16, 2013 /PRNewswire/ -- The RealReal announces that it has raised $14 million in Series B funding. Already a leader in luxury online resale, the company will use this investment to expand its infrastructure to support its rapid growth. The company has grown revenue tenfold in the last year by offering a superior experience for both customers and consignors. With over 750,000 members, The RealReal receives over 1.5 million visits per month.
"We're changing the way people view their designer wardrobe and luxury items," said The RealReal founder and CEO Julie Wainwright. "We offer consignors a way to get a return on what they originally paid for their designer items, effortlessly and lucratively. And, we offer shoppers a fun way to shop."
This round of funding is led by InterWest Partners with participation from all Series A investors: Canaan Partners, e.ventures and Greycroft Partners. The company also added strategic investments from Novel TMT Ventures, Panarea Capital, Suzy Welch and Sukhinder Singh Cassidy.
"The RealReal is one of those thrilling, transformative business ideas you just don't see very often," said Suzy Welch, noted business journalist and co-author of the New York Times bestseller Winning, with her husband, Jack Welch. "I believe The RealReal has the power to change the way many women think about and acquire fashion and, in essence, change the whole lifecycle of luxury goods. Ultimately, I see it recreating the industry in a way that will benefit consumers and sellers alike."
Keval Desai, partner at InterWest and the lead Series B investor, said: "Over the years, we have evaluated a number of e-commerce companies and there is no doubt The RealReal has created a marketplace with the most coveted product offering. This, along with their outstanding team, made it a very easy decision for us to invest in the company."
The RealReal is changing the way people buy and sell luxury items. The leader in luxury resale, the company is a full-service retailer offering customers authenticated pre-owned designer brands including Chanel, Hermes, Louis Vuitton, Gucci and Cartier, all at up to 90% off original retail. The RealReal takes possession of all items prior to sale in order for its merchandising team, authentication specialists and skilled gemologists to evaluate each item. The company also offers buyers merchandise returns, with an in-house customer service team available to answer specific product questions.
Consignors in major U.S. cities can schedule a free pickup or use the company's direct service through its iPhone consignment app or online form. Consignors make up to 70% of the selling price.