Rebag, a luxury handbag resale marketplace, will expand its physical presence to 30 stores from its current five in the medium term including both freestanding and mall-based locations. The expansion will be fueled by $25 million in Series C funding that brings Rebag’s total funding to $52 million.
The retailer also will use the money to triple its team to 300 people, and to further refine its proprietary pricing and luxury handbag evaluation tools. Rebag’s goal is to “become the standard for the luxury resale industry, just like Kelley Blue Book is the main resource for the auto industry,” said Founder and CEO Charles Gorra in a statement.
Rebag facilitates luxury handbag resale with an instantaneous process that includes upfront payment. The retailer recently debuted the Rebag Infinity program, which lets shoppers use bags for up to six months, then exchange them for credit worth at least 70% of the original purchase price.
This latest fundraising round was led by private equity firm Novator, and also included existing investors General Catalyst and FJ Labs.
“This model is not just transformative to the industry but the environment, and consumer buying behavior overall,” said Novator Partner Birgir Ragnarsson in a statement. “The luxury resale market holds incredible growth potential. Consumers see high-end bags as investments, and Rebag both provides an entry point to the luxury ecosystem and sustains it. Ultimately resale will become a pillar of the overall luxury ecosystem, as brands and retailers start to recognize the synergies. Rebag can offer fruitful partnerships to key players and become the underlying platform to power the industry.”