Are second-hand Marketplace companies for sale?

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Integral service around a transaction
BY : Diego GutiérrezFebruary Wed, 2019

Hemos querido analizar en profundidad el sector del Marketplace y nos hemos encontrado con un nicho activo en corporate financesecond-hand markets. In this new post we have talked about the round of financing that the Mexican GoTrendier has received and about the sale of companies most significant in the sector.

Are second-hand Marketplace companies for sale?

Injection for a second-hand clothing marketplace

GoTrendierthe leading application for buying and selling fashion among women in Latin Americacontinues its growth strategy with a new 3.5 million funding round. The company was founded in 2016 by four Spanish entrepreneurs who decided to launch a Marketplace in Latin America.

The capital injection made on 29 January will allow the company to accelerate its growth rate in Mexico and Colombia, open a new market in Chile and boost the technical team that will allow the company to gain scale. This is the third round of investment in the company's history.

Banco Sabadell refuerza su posición como accionista, mientras que esta ronda da acceso a un nuevo accionista, Ataria, un fondo peruano que invierte en compañías de tecnología con un alto potencial en las etapas iniciales. IGNIA también reforzó su posición, junto con Antai Venture Builder, Bonsai Venture Capital, Pedralbes Partners y varios business angels.

As Sergio Pérez, Investment Director at Sabadell Venture Capital, explained: "The market volume for buying and selling second-hand clothing in the world amounted to 360 billion transactions in 2017, and expected to reach 400 billion by 2022".

Sale of companies in the sector

After analysing the round, we will outline the different movements that have arisen in this sector in terms of sale of companies. We searched internationally and looked at the most recent operations. We have noted the following:

1. Videdressing

Founded in 2009, Videdressing is a second-hand market for buying or reselling fashion and luxury goods. It also offers a payment system and anti-fraud measures, among others. Last year, the company achieved a turnover of approximately EUR 35 million thanks to sales commissions, 25,000 transactions and 3 million visits per month.

On 28 November 2018, we learned of the operation by buy by France's LeBoncoin. The amounts of the transaction have not been disclosed by either party.

The measure is strategic for LeBoncoinThe company is now a major player in the online fashion market in France. LeBoncoin is a classified ads website.


2. CarsOnTheWeb

KAR Auction Services, una compañía global de servicios de tecnología y remarketing de automoción, anunció el 28 de noviembre de 2018 que había alcanzado un acuerdo definitivo para adquirir CarsOnTheWeb (COTW). The sale is valued at approximately EUR 91 million in cash and up to an additional EUR 65 million. for a specified period of time, subject to certain terms, conditions and COTW performance.

COTW is a Belgian online auction company for high-quality second-hand cars exclusively for registered dealers and traders. With sales operations in Belgium, France, Germany, Italy, The Netherlands and Spain, COTW offers sellers in these countries and buyers in more than 50 countries with a wide range of vehicle auctions, transport and related assistance services.

Once completed, the acquisition will advance KAR's international strategy and expand its strong portfolio of physical, online and digital auction markets. KAR also intends to leverage the COTW to implementing the company's technology, data analytics and other ancillary services capabilities across Europe.


3. The 2nd Edit

The 2nd Edit is a major second-hand marketplace. for luxury fashion and design. It was founded in Copenhagen in 2015, with the ambition to revolutionise the way we buy and sell second-hand clothing, improving the customer experience both at the point of sale and at the point of purchase.

The sale of the company was confirmed on 1 June 2018, although the amounts are unknown. The company that made the purchase was Rebelle, one of the competitors of The 2nd Edit.

StyleRemains GmbH, which operates Rebelle, was founded in 2013 in Hamburg and focuses on designer brand fashion. It allows sellers to list items themselves or via a consignment service run by the company. It lists around 100,000 items and the average sale is €300.

With the move, Rebelle, which also operates in the UK, Italy, Austria and the Netherlands, expanded into Scandinavia. Following the operation The 2nd Edit brand disappeared.


4. World of Books

Founded in 2005 in the UK, World of Books has been a pioneer in the reuse and recycling of used booksworking with charity shops to collect used books. Also resells as much as possible and recycles the rest to make cardboard and newsprint packaging.

World of Books has created a financial benefit of £11 million from 2012 to 2017 for charities it works with. In the UK, the online book market is worth around £200 million per year, approximately 10% of the total book sales market, and is growing at approximately 15% per year.

Estos aspectos hicieron que Bridges Fund Management, gestor de fondos especializado, comprase la empresa inglesa. La operación se produjo el 29 de noviembre de 2016 y was valued at £13 million.

Oliver Wyncoll, Partner at Bridges Ventures, commented: "Sustainable living is a key focus for Bridges, so we are very excited to invest in World of Books. Its pioneering circular economy model is not only incredibly impactful in terms of waste reduction, but also helps charities and gives it a strong market leadership position in a growing sector."

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