Rebag’s newest store, above, is in Beverly Hills, Calif.
Rebag is riding the resale boom.
The luxury resale retailer announced a $33 million in a Series E funding round, led by private equity firm Novator, with participation from existing investors including General Catalyst. The new round brings the company's total funding raised to $101 million.
The new funding comes on the heels of a strong year for Rebag, one marked by technological advances and ongoing category expansion. The company said it has nearly tripled its business during the last 12 months on a two-year basis since the Covid-19 pandemic began. It also said it has experienced four-times growth in new categories such as fine jewelry and watches, which it entered in 2020.
Rebag will use the new funds to further build upon the tech tools it has developed, including its proprietary software solution, Claire (short for Comprehensive Luxury Appraisal Index for Resale). The solution is equipped with a universal taxonomy and condition grades that act as a standard pricing reference for resellers worldwide
The company will also the funding to scale its tech-enabled brick-and-mortar business. During the past year, Rebag modified its traditional retail model, integrating high-tech touchpoints throughout the store aimed at providing consumers with an immersive retail experience.
The retailer’s new store model features a "Clair Corner," where customers can use a self-service kiosk to receive an instant price quote on the item they are selling via Rebag’s Clair software suite. Last December, the company launched its first "Rebag Bar,” at The Shops at Columbus Circle in New York City. The space was designed as a micro version of a traditional Rebag location.
Utilizing a localized clienteling approach, Rebag's new strategy offers convenient drop-off points, instant connection to stylists, both in-store and digitally, and access to a selection of more than 30,000 items. Customers can sell an item within 60 minutes by leveraging Rebag's upfront payment offering. They can also buy and sell an item in a single, combined transaction via Rebag's recently launched service, Clair Trade.
Recent store openings include locations in Greenwich, Connecticut and Beverly Hills, California. More are planned for 2022.
"Since the company's inception, our vision has been to fuel the circular economy and create further transparency in the resale market," said Charles Gorra, founder and CEO of Rebag. "This latest round of funding will allow us to further develop our technology and launch features that democratize access to information and create an ecosystem that benefits consumers and retailers alike."
McKinsey projects that the value of the $30 billion-plus luxury resale market will grow at an annual rate of 10% to 15% during the next decade, with digitally native resale businesses helping to prompt such growth
"We have been impressed by the quality and consistency of the execution from the Rebag team," added Birgir Ragnarsson, managing partner of Novator. "We believe that the luxury resale space is still in its early innings. Rebag has carved out a unique approach that will facilitate its massive scaling".
Rebag currently has nine physical stores, including four locations in New York City; two in Miami; two in California; and one in Connecticut.