Whenever a standalone company matches the market and announces that they are pitching for a fresh funding, many market observers become too curious on what the move could be insinuating. Having in mind that the Chief Executive Officer of The RealReal has been saying that their final private financing would come immediately prior to issuing their IPO, many tend to think the intended raise of $100 million could be the real pre-IPO financing. Nevertheless, those are just guesses and prediction but soon it will be well known what it is really.
Being launched in 2011, The RealReal has been committed to offering its secondhand clothing sales specifically from the renowned Gucci and Louis Vuitton brands. Over the 7 years of its operation, it has raised over $170 million which has helped it to be a world-class company as it is. The RealReal uses a consignment approach in its operations where a certain seller usually ships their consignment to the company and in return, the company sells for them and the profits are shared between the parties. One of the major issues the company has been facing though it is curbing it with an establishment of a team of inspectors and authenticators is fake goods.
The RealReal Company was originally started to deal specifically with women’s luxury wears but currently, it has expanded their supplies to jewelry, menswear, home décor, arts and even watches. The Company is one of the few fashion resale online businesses still being operational and has overcome the pressures of the competitors. It has a great backup of Kering Company which produces Gucci and Laurent brands and this keeps it running.
The Company was founded by Julie Wainwright who also happens to be its CEO. This brandy fundraising of $100 million many views it as a way of enabling the company to expand its scale base which will please investors and increase its worth when the time of acquisitions arrives. It could be also a way of enhancing their functions as a standalone company maybe after observing the wide gap and large market they are supposed to fill and feed hence they need to invest more capital. Whatever the reason could be, The RealReal is determined to dominate the online fashion resale market.
Read more about The RealReal: https://www.instagram.com/therealreal