Middle East luxury resale marketplace The Luxury Closet has raised US$8.7 million in funding.
The round was led by existing investors Middle East Venture Partners (MEVP) along with participation from Wamda Capital, Precinct Partners, Tech Invest Com, Saned, and Equitrust.
The Luxury Closet is a Dubai-based luxury e-commerce portal that specially focuses on the pre-owned segment with over 60% of their sales reported to come from high-end luxury brands like Louis Vuitton, Chanel and Rolex- brands that rarely discount their merchandise. The startup, however, gives consumers a choice to buy their wish list of items pre-owned at “a discount averaging 60% from retail.” According to a statement by the company, with studies estimating that there’s likely $500 billion worth of luxury goods sitting in closets globally, The Luxury Closet is striving “to bring the untapped supply of luxury items online.”
In April 2015, the e-commerce startup raised $2.2 million in a seed round, and closed a $7.8 million Series B round in October 2016, with its investors continuing to back the startup on its successive rounds.
The startup will use this new round of funding to edge closer to their mission statement- to build “the largest community of sellers” from the region, and ensure a seamless experience for them. “The funding will also allow us to expand our warehousing facility, and build a client experience center. We also plan on growing our team and bringing in top talent to be a part of our road to success,” adds co-founder Kunal Kapoor