- Amid growing consumer demand for secondhand goods, Trove, a recommerce technology company, has raised $77.5 million in Series D funding from G2 Venture Partners, Bank of Montreal, Capital One Ventures, and other investors, the company announced on Wednesday. With its Series D funding round, the company has raised $122.5 million to date.
- The company said it plans to use the funds to "significantly expand" the brands it partners with, enhance its technology and logistics infrastructure, venture into the luxury space and reach European shoppers. It currently lists REI, Patagonia, Nordstrom, Levi's, Eileen Fisher and Lululemon as retail and brand partners, among others.
- Per the press release, the company processed almost 1 million items and oversaw more than 10 million catalog records last year, a three-fold increase from 2019.
Trove is part of a growing retailer movement toward environmental sustainability and, as part of that movement, resale and recommerce initiatives. Trove noted in its release that the company recently joined the Ellen MacArthur Foundation network, an organization that supports businesses that promote a circular economy.
Attaining environmental sustainability goals has remained at the forefront of both consumers' and retailers' minds despite the COVID-19 pandemic. A 2020 survey from Kearney found that almost half of consumers said the pandemic has made them more concerned about the environment, and retailers continued to invest in sustainability measures during the pandemic in order to maintain long-term success. A Moody's Investors Service report indicated that retailers need to reform their operations to appeal to today's eco-conscious consumers.
The secondhand clothing market is also expected to rise. A ThredUp report predicts that used clothing sales will reach $77 billion in five years, and 62% of retail executives in the report said their customers had bought secondhand goods. Taking a cue from consumers, retailers and brands like REI, Lululemon, Patagonia and Urban Outfitters have created their own recommerce programs over the past few years.
"Consumer demand for resale is soaring and premium brands know it's now a strategic imperative to control their brand and stay close to their customers by owning their trade-in and resale channels instead of handing them over to third-party marketplaces," Andy Ruben, CEO of Trove, said in a statement. "We're thrilled to join forces with this group of prestigious investors to accelerate our expansion efforts and enable more brands and retailers to build successful resale channels that help them deepen their relationships with customers and reduce their environmental impact."
As Trove raises funding to develop its technology and brand partnerships, other resale companies have raised capital and are going public. Poshmark and ThredUp each filed for IPOs within the past year or so, and Rent the Runway joined them both by filing for an IPO just last month. In January, Curtsy, a fashion resale platform, raised $11 million in Series A funding to hire more staffers and grow its recommerce market share.