Madrid: The Luxury Closet, a website for buying and selling second-hand luxury goods, has received fresh backing from a group of Middle Eastern venture capital investors as it seeks to expand beyond the region.
The Dubai-based site has a 20,000-product catalogue ranging from €45,130 (Dh165,739 or $52,660) ostrich leather Hermes handbags and Cartier wristwatches priced at €14,726 to pink Gucci blouses for €465. The company aims to use the funding to increase buyers and sellers on its platform.
Middle East Venture Partners, based in Beirut, led the $8.7 million funding round, according to a statement from Luxury Closet. Precinct Partners, Wamda Capital, and Equitrust, among others, also invested.
Sellers using Luxury Closet send their products to the company to keep in a temperature-controlled warehouse until they are bought, while the company’s “authenticity experts” certify quality. Chief Executive Officer Kunal Kapoor founded the website, labelled as an online boutique for “pre-loved luxury items,” and has a workforce of 80 people.
More established luxury companies are also expanding in the sector. In June, Richemont, the owner of Cartier and IWC luxury timepieces, purchased Watchfinder, an internet-based retailer that specialises in used watches.
Delta Partners Group acted as adviser on the funding round.