South African online resale fashion platform Yaga has raised €4-million (about R80-million) in a pre-Series A global funding round, securing investment from Specialist VC, H&M Group Ventures, Trind Ventures, Startup Wise Guys, and a group of angel investors.
Resale platforms are no longer niche; they’re becoming mainstream shopping destinations. Last year, the global second-hand apparel market grew by about 15% reaching $227-billion, and it is forecast to nearly double to $367-billion by 2029.
Yaga is a safe and user-friendly pre-loved fashion buying-and-selling platform with an escrow-based payment system and localised logistics to protect buyers and sellers. It has built a strong presence in South Africa.
“Items on Yaga are typically 50% to 80% cheaper than new, making fashion more accessible,” explains Aunapuu. “In addition, more than 6-million fashion items have been given a new life through Yaga over the last few years, promoting sustainable fashion and reducing textile waste. Furthermore, Yaga also opens economic opportunities in the second-hand fashion industry: over €80-million has been earned by sellers on Yaga globally.”
At the same time, Yaga has doubled in size annually, reaching a more than €50-million GMV run rate with a 25-person team and just €3,2-million funding raised prior to this round, highlighting both the strong market demand and the efficiency of Yaga’s model.
Yaga’s success continues to attract attention from international investors in this pre-Series A funding round led by Specialist VC, with participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and a group of angel investors, demonstrating confidence in both the pre-loved fashion market and in Yaga.
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for pre-loved fashion – one of the fastest-growing business sectors within the fashion industry,” says Nanna Andersen, MD of H&M Group’s business area New Growth & Ventures. “Their presence on the African continent is also a strong complement to H&M Group’s existing second-hand initiatives in other parts of the world.”
Aune Aunapuu, CEO and founder of Yaga, comments: “Second-hand fashion is no longer a trend, it’s becoming the first choice for millions of people who want both affordability and sustainability. Our growth in South Africa proves that this is a global movement. With this funding, we will strengthen our existing markets, explore new ones – including the Middle East and North Africa, and continue to build the sustainable fashion marketplace of the future.”