Do you have some extra spare cash which you’d like to use for an investment in a big niche company but have no idea where to start? If yes, then The RealReal is a perfect fit for your description. According to a source, the Chief executive officer of the fashion company Mrs. Julie Wainwright is currently on a mission to raise a fresh $100 million fund and is inviting investors to chip in. Reasons for the funding are unknown to the public but the most probable reasons are two.
First, it could be either the RealReal is seeking capital to help push it to greener grounds so it can be financially appealing to top investors and buyers. Or secondly; the company’s management could have realized that the secondhand market for luxury consignments is packed with opportunities which it never saw when it first ventured into that area. Therefore if it successfully manages to get that kind of amount then it will be in a better position to invest and expand its scope to greater levels.
However, these are just assumptions because the RealReal’s chief executive officer, Julie Wainwright has not publicly declared the reason behind the fundraising and neither has she responded to the multiple requests from the press to comment on the matter.
About the RealReal
Established about eight years ago in 2011, the RealReal is a fashion company which took an ultimately, unique approach to dealing with second-hand clothes and items from luxury companies like Gucci. The company operations are similar to that of eBay only that it specifically deals with clothes for both males and females, art and home décor from top brands like Louis Vuitton, Gucci, Versace, and Prada among many others.
It is situated in New York and is the brainchild of the CEO Julie Wainwright under whom it has experienced tremendous growth.
For instance, in the few years that it has been in the fashion arena, the RealReal has generated over $170 million worth of revenue and continues to get even better by the day. However, that has not been achieved on a silver platter and neither has it been easy. According to Mrs. Wainwright, the RealReal faced a lot of hostility from the brands whose clothes it used to sell in second hand when it was still a startup.
Fortunately, times and tides have changed and such brands are slowly embracing the company and even creating partnerships with her company. As mentioned earlier, the RealReal operates under the consignment basis in which a seller ships their goods to the company and in return they do the marketing and the complete the sale. The gains are then divided between them and the seller at rates of 50 to 60 percent depending on the selling price. Thanks to its incredible management team led by Mrs. Julie Wainwright, the company is doing pretty well and is slowly taking over the fashion resale sector.