Tradesy has secured $13 million in Series B funding. Kleiner Perkins Caufield & Byers led the round with participation from Sir Richard Branson, Rincon Venture Partners, Bee Partners, Northgate Capital and other unnamed investors. In conjunction with the funding, KPCB’s John Doerr and Stephanie Tilenius have been added to Tradesy’s board of directors. Headquartered in Santa Monica, Calif., Tradesy is a peer-to-peer marketplace for fashion.
Santa Monica, CA, May 20, 2014: Tradesy (www.Tradesy.com), the leading peer-to-peer marketplace for designer fashion, today announced that it has raised $13 million in Series B financing led by Kleiner Perkins Caufield & Byers (KPCB), with participation from Sir Richard Branson, Rincon Venture Partners, Bee Partners, Northgate Capital, and others. KPCB General Partner John Doerr and Stephanie Tilenius have joined Tradesy’s Board of Directors.
Tradesy will use the new funding to further propel its rapidly accelerating growth, scale its team, and invest in making customers happy as it expands its mission of making it easy to unlock the resale value of pre-owned designer products. Tradesy helps consumers get up to 50% more value for items already in their closet, and exchange them for new items through a “cyclical commerce” model, which is the practice of selling underutilized items in order to fund the purchase of new ones.
“Tradesy is highly disruptive, and empowering,” said Sir Richard Branson. “Tradesy lets you shop and save, simply, while promoting sustainability. Your closet becomes your own startup – and you become the entrepreneur.”
The increasingly rapid turnover of fashion trends and ubiquity of social networks are contributing to consumers’ desire to shop more frequently. Especially amongst Millennials, the frequent wardrobe updates associated with various stages of personal and professional development require affordable, temporal access to fashion, despite the fact that their income is often less than that of previous generations. Everyone has something unused or under-used sitting in their closet, and Tradesy makes it safe and simple to exchange these items for others by providing a high-touch re-commerce experience that eliminates the pain traditionally associated with online resale.
“The Tradesy marketplace is delighting a new generation of consumers by making it ridiculously easy to buy and sell possessions, and save money,” said John Doerr, General Partner of KPCB. “Tradesy’s ‘cloud closet’ enables a lightweight lifestyle that is a smart, new trend in the sharing economy.”
Tradesy connects sellers to like-minded buyers, provides packaging materials, recommends pricing, and handles returns. The platform’s proprietary curation and personalization algorithms help to efficiently connect supply with demand, and its growing collection of rare and vintage designer fashion makes it a destination for one-of-a-kind finds.
This approach has allowed Tradesy to establish itself as the leader in designer fashion resale in just 18 months. Today, Tradesy has 1.3 million members and the world’s largest selection of authenticated designer resale merchandise for women. Tradesy is growing sales at 35 percent month-over-month, with more than 50 percent of monthly sales coming from repeat buyers and repeat sellers.
“It’s very exciting to see our vision of cyclical commerce make our customers happy,” said Tradesy CEO and Founder, Tracy DiNunzio. “Eighty percent of the money that Tradesy members earn is used to finance another purchase in the same category, satisfying consumers’ desire to trade up via online resale. Tradesy is truly a win-win.”
Tradesy is the leading peer-to-peer marketplace for fashion. The company’s unique marketplace technology platform automates everything from shipping and returns to the enhancement of user-generated content to the authentication of designer goods, removing the frictions previously associated with online resale. By focusing on customer experience and the mission of making it easy for anyone to access the resale value of the things they own, Tradesy has pioneered the emerging behavior of cyclical commerce and a lightweight lifestyle that’s focused on experiencing rather than owning products and goods. For more information, visit www.tradesy.com. For press inquiries, please contact [email protected]
ABOUT KLEINER PERKINS CAUFIELD & BYERS
Kleiner Perkins Caufield & Byers (KPCB) partners with the brightest entrepreneurs to turn disruptive ideas into world-changing businesses. The firm has helped build pioneering companies like Amazon, Electronic Arts, Genentech, Google, Nest, Netscape, and Twitter. KPCB offers entrepreneurs years of operating experience, puts them at the center of a vast and influential network, and accelerates their success through expertise and support in recruiting, product design Tradesyand delivery, business development, strategic partnerships, and brand building. KPCB invests in all stages from seed and incubation to growth companies and operates from offices in Menlo Park, San Francisco, Shanghai, and Beijing. For more information, visit www.kpcb.com and follow us @kpcb.