The funds will fuel the company’s global expansion, as it taps into a resale market growing four times faster than primary sales.
The Gulf’s leading online luxury resale marketplace, Dubai-based The Luxury Closet, has secured $14 million in equity capital in a round led by GMP Investments. The round also saw participation from regional and global investors HB Investments, Nazer Group, Middle East Venture Partners (MEVP) and MLM Investment Company.
The fresh funds will fuel The Luxury’s Closet’s vision for global growth as the company eyes markets beyond the UAE in a bid to be a leader within the international high-end luxury resale market.
As consumers embrace a more conscious and sustainable approach to fashion, the pre-owned luxury fashion industry continues to boom, witnessing growth in recent years averaging 12%, outpacing the primary luxury market’s growth of 3%, according to luxury lifestyle and business magazine, Luxe Digital.
“Re-sale is the future of shopping,” stated Kunal Kapoor, CEO and Founder of The Luxury Closet. “We expect one in six transactions to be pre-owned by the end of the decade. This marks a paradigm shift in consumer choice and the value chain of the fashion and retail industry. What we are excited about most is leading the industry to a more sustainable and environmentally friendly future,” he said.
Awad Capital Ltd. served as financial advisors to the company during the investment process, along with Drake Star Partners, an international tech-focused investment bank.