Santa Monica, CA, May 20, 2014: Tradesy the leading peer-to-peer marketplace for designer fashion, today announced that it has raised $13 million in Series B financing led by Kleiner Perkins Caufield & Byers (KPCB), with participation from Sir Richard Branson, Rincon Venture Partners, Riverwood Capital, and Northgate Capital. KPCB General Partner John Doerr and Stephanie Tilenius have joined Tradesy’s Board of Directors.
Tradesy will use the new funding to further propel its rapidly accelerating growth, expand its team, and invest in making customers happy as it expands its mission of making it easy to unlock the resale value of pre-owned designer products. Tradesy helps consumers get up to 50% more value for items already in their closet and exchange them for new items through a “cyclical commerce” model, which is the practice of selling underutilized items in order to fund the purchase of new ones.
“Tradesy is highly disruptive, and empowering,” said Sir Richard Branson. “Tradesy lets you shop and save, simply, while promoting sustainability. Your closet becomes your own startup – and you become the entrepreneur.”
The increasingly rapid turnover of fashion trends and ubiquity of social networks are contributing to consumers’ desire to shop more frequently. Especially amongst Millennials, the frequent wardrobe updates associated with various stages of personal and professional development require affordable, temporal access to fashion, despite the fact that their income is often less than that of previous generations. Everyone has something unused or under-used sitting in their closet, and Tradesy makes it safe and simple to exchange these items for others by providing a high-touch re-commerce experience that eliminates the pain traditionally associated with online resale.
“The Tradesy marketplace is delighting a new generation of consumers by making it ridiculously easy to buy and sell possessions, and save money,” said John Doerr, General Partner of KPCB. “Tradesy’s ‘cloud closet’ enables a lightweight lifestyle that is a smart, new trend in the sharing economy.”
Tradesy connects sellers to like-minded buyers, provides packaging materials, recommends pricing, and handles returns. The platform’s proprietary curation and personalization algorithms help to efficiently connect supply with demand, and its growing collection of rare and vintage designer fashion makes it a destination for one-of-a-kind finds.
This approach has allowed Tradesy to establish itself as the leader in designer fashion resale in just 18 months. Today, Tradesy has 1.3 million members and the world’s largest selection of authenticated designer resale merchandise for women. Tradesy is growing sales at 35 percent month-over-month, with more than 50 percent of monthly sales coming from repeat buyers and repeat sellers.
“It’s very exciting to see our vision of cyclical commerce make our customers happy,” said Tradesy CEO and Founder, Tracy DiNunzio. “Eighty percent of the money that Tradesy members earn is used to finance another purchase in the same category, satisfying consumers’ desire to trade up via online resale. Tradesy is truly a win-win.”