The RealReal, a US-based luxury goods marketplace backed by telecommunications company Novel Group, raised $40m yesterday in a series E round led by venture capital investment platform Greenspring Associates.
The round, which also included Broadway Angels, NextEquity Partners, Springboard Fund, Canaan Partners, E.Ventures, Greycroft Partners, InterWest Partners, DBL Partners and Industry Ventures, took the company’s overall funding to $123m.
Founded in 2011, The RealReal operates an online marketplace where users can quickly buy and sell authenticated luxury items such as fashion, jewellery, watches and fine art.
Sellers consign their goods to the company, which offers a home pick-up service, and receive between 60% and 70% of the final sale price. The RealReal has more than 4.5 million users and has sold some two million items since its launch.
Founder and CEO Julie Wainwright told Forbes the company made $206m in revenue in 2015 and has projected $400m this year. It expects to become profitable by the fourth quarter of 2016, and to look to go public in around two years time.
“This new round of funding will take our business to the next level,” Wainwright said in a press release yesterday.
“As we look ahead, we are excited about growing the business globally while continuing to provide our customers and consignors with an inimitable business model that makes buying and selling pre-owned luxury goods online as easy, trustworthy and lucrative as possible.”
Novel TMT, which acts as Novel Group’s corporate venturing arm, took part in The RealReal’s $14m series B round in 2013, investing alongside Canaan Partners, E.Ventures, Greycroft Partners, Panarea Capital and angel investors Suzy Welch and Sukhinder Singh Cassidy.