Yaga, a local online resale fashion platform, has raised €4m (approximately R80m) in a pre-Series A global funding round, securing investment from Specialist VC, H&M Group Ventures, Trind Ventures, Startup Wise Guys, and a group of angel investors.
This latest funding reflects investor confidence in both the sector and the Yaga team.
Resale platforms are no longer niche; they’re becoming mainstream shopping destinations. Last year, the global second-hand apparel market grew by about 15% reaching $227bn, and it is forecast to nearly double to $367bn by 2029.
At the centre of this global shift is Yaga – a safe and user-friendly pre-loved fashion buying-and-selling platform with an escrow-based payment system and localised logistics to protect buyers and sellers.
Yaga has built a particularly strong presence in South Africa, where it dominates the online fashion resale market.
“Items on Yaga are typically 50-80% cheaper than new, making fashion more accessible,” explains CEO, Aune Aunapuu.
“In addition, more than six million fashion items have been given a new life through Yaga over the last few years, promoting sustainable fashion and reducing textile waste. Furthermore, Yaga also opens economic opportunities in the secondhand fashion industry: over €80m has been earned by sellers on Yaga globally.”
At the same time, Yaga has doubled in size annually, reaching a €50M+ GMV run rate with a 25-person team and just €3.2m funding raised prior to this round, highlighting both the strong market demand and the efficiency of Yaga’s model.
Yaga’s success continues to attract attention from international investors in this pre-Series A funding round led by Specialist VC, with participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and a group of angel investors, demonstrating confidence in both the pre-loved fashion market and in Yaga.
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for pre-loved fashion – one of the fastest-growing business sectors within the fashion industry,” says Nanna Andersen, managing director of H&M Group’s business area New Growth & Ventures.
“Their presence on the African continent is also a strong complement to H&M Group’s existing second-hand initiatives in other parts of the world.”
“Second-hand fashion is no longer a trend, it’s becoming the first choice for millions of people who want both affordability and sustainability,” concludes Aunapuu.
“Our growth in South Africa proves that this is a global movement. With this funding, we will strengthen our existing markets, explore new ones - including the Middle East and North Africa, and continue to build the sustainable fashion marketplace of the future.”
