Online consignment shop Tradesy has been awarded another $30 million investment, led by Kleiner Perkins. The funding comes just eight months after Kleiner led a group that gave $13 million to the startup.
Tradesy is now valued around $100 million, with funding from previous investors including Richard Branson and Rincon Venture Partners, reported Re/code.
Shoppers can both buy and sell used clothing on the Tradesy website and app. The company holds little to no inventory, similar to the way that eBay operates. It provides sellers with packaging and shipping labels so that products can be sent directly to buyers.
Similarly, ThreadUp recently raised $53 million, but this was to build and hold inventory in order to speed up delivery times. The company also recently added an East Coast warehouse to help with these goals.
Tradesy joins a growing list of retail marketplaces that offer goods on consignment including The RealReal, which raised more than $40 million to focus on lightly-used luxury apparel; Couture Within Reach, which launched a website last fall; Pose, which recently unveiled a new feature of its Web- and app-based digital photo sharing service; and eDrop-Off, which recently announced it will open its first retail store in Chicago.
Tradesy's return rate is around 6 percent and the company is able to resell 90 percent of the clothes and accessories that get returned. The company's hands-off approach allows it to take 9 percent of each sale, a small margin but it also attracts physical consignment sellers to the site.
The company is a spinoff of founder and CEO Tracy DiNunzio's bridal gown resale site, Recycled Bride, launched in 2012. At first, money was tight and Tradesy had trouble finding investors.
Tradesy will use the funding to add to its staff of 70, especially on its data science team. It will also continue to invest in advertising on Google Product Listing Ads, although a majority of sales come from organic traffic.
-See the Re/code article
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