Vestiaire Collective’s Bet on Tradesy: The resale expansion trend continues in earnest, with Vestiaire Collective acquiring Los Angeles-based Tradesy for an undisclosed amount on Tuesday.
Together, the companies’ gross merchandise value exceeds $1 billion, equating to millions of listed items and a combined community of 23 million users. While the financial terms of the cash and stock transaction remain undisclosed, Morgan Stanley and Cowen (a firm with an early eye on luxury resale) played advisory roles to the companies.
And the companies have a lot in store.
Vestiaire Collective will open an authentication center in the Los Angeles area, which will be operational by the end of this year, constituting the company’s fifth global authentication center and second in the U.S.
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Tradesy’s traction in recent years comes as little surprise.
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In September 2021, Tradesy earmarked another $67 million in funding (bringing its total funding at the time to $145 million), and it hired former Ebay and SoftBank executives. The company climbed the ranks in private resale funding, trailing Vestiaire Collective, Vinted and StockX, among others. Like Japanese resale marketplace Mercari, Tradesy boasts the value of low overhead with virtual authentication technology.
Vestiaire Collective believes the transaction showcases a “strategic dynamic” and the importance of playing globally and locally. And company executives will stay the course and build upon each company’s respective strengths. For Vestiaire Collective, this means authentication and global supply chain expertise, and in the case of Tradesy — U.S. market prowess. Maximilian Bittner, chief executive officer of Vestiaire Collective, and Fanny Moizant, the company’s founder and president, will continue to serve in those roles.
“Today’s transaction is a key milestone for the luxury fashion resale industry,” Bittner said. “By joining forces with Tracy and her team, we continue to empower our customers to drive change by making secondhand fashion a first choice. With this transaction, we confirm Vestiaire Collective’s ambition to be a truly global player, promoting circularity in Europe, the U.S. and Asia-Pacific.”
John Doerr, a Tradesy board member and shareholder, will become a minority shareholder in Vestiaire Collective. Tradesy’s founder Tracy DiNunzio will stay on to lead Vestiaire Collective’s combined U.S. operations, while joining its global executive committee, according to a spokesperson for Vestiaire Collective.
“Fanny, Max and their great team have done a spectacular job positioning Vestiaire Collective as the leading marketplace in our global industry,” DiNunzio said in a statement. “With today’s transaction, we are positioned to significantly improve the experience of U.S. fashion customers.”
Resale Tech Hiring Frenzy: Trove — the company powering the resale operations of Lululemon, Eileen Fisher, Patagonia and more — is growing.
On Tuesday, the company announced three executive leadership appointments as well as a new board member. The hires include Greg Ferris, formerly chief product officer at Fandango, joining as chief product officer; Hitesh Chudasama, formerly senior director of software engineering at Upwork and director of software engineering at Ebay, joining as vice president of engineering, and Jamin Nieri, formerly chief executive officer of fashion distribution services at Savino Del Bene, as senior vice president of operations.
Additionally, Shelley Bransten, who is corporate vice president of global retail and consumer industries at Microsoft, has joined Trove’s board. With decades of experience eyeing growth and digital transformation within retail, Bransten sees sustainability and re-commerce as “crucial” to brands’ growth strategies and long-term success.
“Re-commerce is growing faster than traditional retail because consumers are increasingly aware of the need for all of us to prioritize sustainability and extend the life span of products we buy,” said Bransten. “That makes it crucial for brands to take control of their own resale and take-back channels and maintain their direct relationships with their customers. I’m honored to join the board of a company whose business model and mission align so closely with my own values and the goals I’ve supported throughout my career.”
The momentum and technology expertise will help Trove enable its brand partners to tap the “full potential and profitability of the resale channel,” according to Ferris. “Branded re-commerce enhances brands’ existing retail and e-commerce experiences and I look forward to further developing Trove’s platform to increase the impact re-commerce has on our partners’ businesses and sustainability programs.”
Regarding the company’s expansion, Trove president Gayle Tait expressed excitement for the next chapter: “Each of these executives brings significant expertise and experience to their role, along with a deep commitment to using technology to create a more sustainable economy. In addition, they’re all experienced, capable leaders who have built and managed high-impact teams that drive results.”