Fashionphile, the US-based luxury fashion marketplace backed by department store operator Neiman Marcus, has secured $38.5m in a series B round led by private equity firm NewSpring’s growth equity arm, NewSpring Growth.
Founded in 1999, Fashionphile operates an online platform where users can buy or sell pre-owned luxury fashion items such as designer handbags, jewellery, watches or accessories.
Each item is authenticated by the company’s experts before it goes on sale. It charges a 30% consignment fee for each item priced up to $3,000 and 15% for any amount that goes past that figure.
The deal comes after Neiman Marcus invested an undisclosed amount in the company in April 2019 through a partnership agreement that has enabled it to establish spaces in four Neiman Marcus outlets where customers can bring in items for resale.
The funding will support geographical expansion and the establishment of more fulfilment centres both in the United States and internationally. It will also support investment in automation and artificial intelligence technology that includes a proprietary visual recognition tool Fashionphile has developed.
Ben Hemminger, chief executive of Fashionphile, said: “Over the past 20 years we have developed the largest luxury inventory in the industry, created cutting edge re-commerce technology, and have led the way in authentication excellence.
“We are now excited to put the funds from this raise to work to increase awareness and introduce more luxury shoppers to Fashionphile and the joys and benefits of the circular economy.”
Photo courtesy of Fashionphile Group, LLC.
