BrazilM&A advisors help The Luxury Closet raise $14 million capital
Dubai-based second-hand fashion trailblazer The Luxury Closet is set to embark on a global expansion drive – now equipped with $14 million in Series D funding. Supporting the firm through the latest financing round were experts from Drake Star Partners and Awad Capital.
Investment firm GMP – also based in Dubai – led the funding round, which saw participation from a number of local and global players, including local venture capital and private equity firm Huda Beauty Investment.
Backers are enticed by The Luxury Closet’s timely proposition that checks several boxes – second-hand, luxury products sold via an online platform. Besides cutting the cost of luxury during an economic squeeze, the platform also belongs in a rapidly expanding ‘sustainable fashion’ segment.
“Re-sale is the future of shopping,” said The Luxury Closet CEO Kunal Kapoor. “We expect one in six transactions to be pre-owned by the end of the decade.”
Fashion resale is currently a $40 billion industry worldwide, and set to get much bigger: Bain & Company has calculated that roughly $500 billion of re-sellable luxury items are currently sitting in closets worldwide. With sustainability taking centre stage in consumer preferences, these conditions could ring in a booming resale landscape.
Growth story
The Luxury Closet is looking to tap into this market – equipped with a cutting edge ecommerce platform and a thermoregulated warehouse where items can be safely stored until they are verified and eventually sold.
Since launching in 2012, the firm has built up a catalog of over 60,000 luxury products, featuring brands such as Louis Vuitton, Chanel, Cartier and Rolex – available at discounts of up to 70%. Luxury Closet already employs roughly 80 people, and has succeeded in making the US its second largest market after Dubai.
Further global expansion is now on the cards – and the latest $14 million capital raise should help with these ambitions. “The Luxury Closet is a rare example of a global leader in its space based in our region, and we are proud to support them as they champion sustainability and innovation,” said Zaid Awad, founder and CEO of Awad Capital.
Awad’s Dubai-based advisory firm used its in-depth M&A expertise to advise The Luxury Closet on the latest funding round – topped off with investment expertise from global investment bank Drake Star Partners.
According to Drake Star Partners managing partner Christophe Morvan – who was involved in the deal – the successful Series D round is a harbinger of more to come from the advisory team. He noted how the transaction “illustrates that the collaboration between Awad Capital and Drake Star Partners offers a unique global reach to our clients.”
