“The RealReal is an online luxury consignment store, founded by their CEO Julie Wainwright. The site sells brands such as Louis Vuitton, Gucci, Chanel and more. Competing with sites like ThredUp, Poshmark, and Tradesy, The RealReal is unique due to a better promise of authentic products. Each item is thoroughly inspected by an in house authentication team before it gets shipped to the buyer. The platform allows its customers to buy pre-loved free items for a fraction of the cost.
In the beginning, the website started out on something that focused more on the women’s end of fashion. Over the last few years, it has expanded into menswear, home decor, and many more extensive categories. Along with the businesses expansion, a physical store location in New York City was built offering free evaluations for items, personal shopping, and consignment drop off. The future looks extremely bright for The RealReal.
According to multiple sources, Wainwright is currently looking for investors to help raise about one hundred million dollars in new funding for the company. In the seven years since the site launched The RealReal has raised more than 170 million dollars, Around 50 to 60 percent of the price of each item sold.
It is believed that it could be to help the company reach a larger amount of people and investors in the public market. as well as giving the business more time to prove that it can sustain long-term.
On the other end, it could also be that the success of the site has proven just the market for second-hand luxury goods is much more profitable than they thought. This could mean is a much bigger opportunity for investors to take an even greater share by investing in further growth for the company.
Wainwright has yet to respond to questions or made any comments about these new fundraising efforts. At this time everything is left up to speculation.”