(News Bulletin 247) – The specialist in the sale of second-hand clothing and accessories is launching a crowdfunding campaign with a view to achieving profitability at the end of the year. A first step before a potential IPO, reports Reuters.

The second-hand fashion market is thriving, and its use is increasingly important among younger consumers. Estimated at $177 billion in 2022, the global second-hand fashion market is expected to double by 2027 to reach $350 billion, according to a report from Thredup, cited by the specialist site Fashion Network.

And it is in this favorable context that Vestiaire Collective launched a participatory financing (or crowdfunding) campaign this Tuesday to raise at least one million euros from individual investors, reports Reuters.

Founded in 2009 in Paris – a short year after the Lithuanian juggernaut Vinted -, Vestiaire Collective is one of the pioneers in the sale of second-hand luxury clothing and accessories. And on the occasion of its 15th anniversary, the company says it invites its community to join the adventure, “not only as customers, but also as shareholders”.

In its argument, Vestiaire Collective recalls having raised 551 million euros raised from leading investors, such as the luxury group Kering which is a 5% shareholder, Condé Nast (the press group which owns, among others, Vanity Fair), as well as the private equity company Eurazeo. And in November 2021, Softbank took a stake in the second-hand luxury nugget during a fundraising of 178 million euros.

A potential IPO from 2025?

The company also claims 2.3 million orders in 2023, which reflects a compound annual growth rate of 38% over the last five years. “The average value of orders stands at 350 euros in 2023, supporting an attractive economic model,” adds the second-hand specialist.

Vestiaire Collective’s objective is therefore to continue to gain market share in a booming sector. Vestiaire Collective wants in particular to continue its international development by strengthening itself in its existing markets and entering new markets.

Regarding the fundraising, the proposed price is 1.78 euros per share, which values ​​Vestiaire Collective at 1.1 billion euros, or $1.2 billion. A symbolic threshold which allows it to claim the status of “unicorn”, that is to say unlisted companies valued at more than a billion dollars. The valuation of the French unicorn is thus in line with that obtained in November during a funding round led by the private equity company Eurazeo, its main shareholder with a stake of around 25%, recalls Reuters. In mid-2022, the company was valued at 1.4 billion euros, also specifies Reuters.

This crowdfunding campaign is open to anyone over the age of 18 in Europe and the United Kingdom, on its website and mobile application. Subscriptions will begin on February 6 on a dedicated platform, adds Reuters.

For Vestiaire Collective, this is a first step towards achieving profitability at the end of the year, before a potential IPO in 2025. Vestiaire Collective did not, however, provide further details on the planned listing location. for its arrival on the stock market.

In November 2022, Vestiaire Collective banned more than 60 “fast fashion” brands from its platform, including Boohoo, Gap, H&M, Zara, Uniqlo and Shein. The Chinese fast-fashion specialist is also considering an IPO and last fall filed a confidential IPO plan on Wall Street with the Securities and Exchange Commission (SEC), the American watchdog of Sotck exchange. However, it could be delayed by a Beijing cybersecurity investigation, according to recent information from the Wall Street Journal.