The RealReal Raises $14 Million In Series B
The RealReal is an online luxury resale store where designer items are selected by stylists. The company has raised $14 million in Series B funding led by InterWest. Canaan Partners, e.ventures, Greycroft Partners, Novel TMT Ventures, Panarea Capital, Suzy Welch, and Sukhinder Singh Cassidy also participated in this round. The RealReal plans to use the funding to expand their technology and infrastructure by introducing search, a mobile app, and personalization.
The RealReal lets consignors sell designer goods online at up to 70% of the sales price. Customers will be able to get goods from high-end brands like Chanel, Christian Dior, and Burberry at low prices. The RealReal confirms that the designer goods are authentic. The sales of the goods last 72 hours. Members can pay to shop 24 hours in advance of the sales for $5 per month. The $5 per month model is working well for the company because 5,000 members are already paying that much.
The company is growing at a rapid pace and several celebrities are selling their products through the website. Around 1,000 new items are being added to their warehouse per day. Revenue at the company has grown tenfold since last year, according to TechCrunch.