Vestiaire Collective's Community Equity Fundraising Round

Vestiaire Collective, a prominent luxury resale platform, is embarking on an innovative journey by launching a community equity fundraising round. This initiative, in partnership with the U.K.-based Crowdcube, marks a significant move as the company nears profitability and sets its sights on an Initial Public Offering (IPO).

The fundraising aims to raise a minimum of 1 million euros, offering customers a stake in Vestiaire’s future growth. CEO Maximilian Bittner views this move as a gesture of gratitude towards the community, building on the company's previous decision to make all employees shareholders.

Investors can purchase the latest class of preferred shares at 1.78 euros each, with a minimum buy-in of 11 euros. This follows a quiet internal round in November, which raised an additional 25 million euros, led by Eurazeo at a 1.1 billion euro valuation.

Vestiaire's journey towards profitability is notable, especially considering its revenue growth of 25% in 2023. The company has successfully doubled its gross merchandise value and sales over the past three years. Bittner credits this success to the platform's resilience during the luxury market's fluctuations and its strong focus on environmental sustainability, including a ban on fast fashion.

The company's strategy in the U.S. market, including a focus on ready-to-wear and shoes over high-end items, is aimed at attracting a broader customer base. This approach is bolstered by the acquisition and integration of U.S.-based Tradesy into Vestiaire Collective.

Vestiaire Collective's ambition to hit profitability before its IPO sets it apart from competitors like The RealReal and Poshmark, which faced challenges post-IPO. The company's community equity fundraise, part of its larger marketing strategy, is seen as an innovative way to strengthen its connection with its community and reinforce its commitment to sustainable fashion.

As Vestiaire Collective prepares for its IPO, this equity round is a strategic step, offering an opportunity for its community to invest and participate in the platform's future success.

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