Luxury Consignment Site The RealReal Raises Another $40 Million
Posted on April 25, 2016
The RealReal, a luxury consignment website, has raised another $40 million in financing. The company is planning to use the newly raised money for acquisitions.TechCrunch reports that The RealReal has raised $125 million in outside funding to date. Investors in the latest round were led by Greenspring Associates. The company is looking at acquisition targets in the U.S. and overseas.
The RealReal says users can earn up to 70% of the sale price for their items. It says most items sell within 3 days. They offer in-home pickup or free shipping. The site photographs and sells the items for you. The RealReal says has 4.5 million members who have sold over 2 million items. The company uses its own algorithm to determine pricing based on age of the item, designer and other factors.
The RealReal CEO and Founder Julie Wainwright told Fashionista it is looking to reach $1 billion in annual sales within two to three years. They were at $100 million in 2014 and reportedly about double that last year. A smart acquisition could boost the company's number of sellers and items thereby boosting revenues.