RealReal, a luxury consignment company founded in 2011 is looking for $100 million dollars in funding. RealReal’s CEO Julie Wainwright has been promising an ensuing IPO for years now, and although the company has raised $170 million in funds since its launch, it looks like more will be needed. The internet seller now has an actual physical location in SoHo, and still makes waves selling top brands secondhand. Many speculate why Wainwright would want additional funding, and most reason it is because the business either lacks capital or wants to invest in more growth before it stands on its own.
The beauty of RealReal is that it operates by consignment model. Sellers ship their goods to the company which turns around and sells it. They split the profit 50/50, or 60/40, and everyone is happy. People who invested money in top quality fashion get money back, and individuals who cannot afford top quality receive it at an agreeable discount. RealReal has an in-house company that authenticates the items so no one is dealt fakes. Since its founding it has grown from a focus on women’s fashion to everything else. The site now offers menswear, art, jewelry, and even home décor. Its physical location, like Amazon’s foray into brick and mortar, makes the site even more accessible.
The possibilities ready for a hefty $100 million investment are endless. A wave of brick and morter stretching across a few states. Possible collaboration with high-end manufacturers like Yves Saint Laurent and Gucci. RealReal is one of many venture-backed businesses in the resale market. Although it has enjoyed success it has yet to face giants like eBay. The extra investment could be just what the company needs to rise from the crowd and carve out is own territory. The answers wait on Wainwright, and she is not saying anything. One this is for sure, it will be a pleasant surprise.