fashion marketplace, gotrendier, gets us$3.5 million to scale operations to chile and argentina
Contxto – GoTrendier, the fashion marketplace startup from Mexico, recently raised US$3.5 million from various investors to launch operations in Chile and Argentina.
Officials formalized the deal last November but waited to announce anything until 2019 for strategic reasons.
Peruvian fund, Ataria, joined the cap table as the company’s newest shareholder. Other investors following up on their positions include Ignia Partners, Banco Sabadell, Antai Venture Builder, Bonsai Venture Capital
Do you want to make an extra buck from your closet?
GoTrendier is an online – mostly mobile – marketplace where users can buy and sell secondhand items. These range from clothing, bags, shoes, accessories, etc.
Founded in 2016 by four Spanish entrepreneurs, it was initially backed by the Catalan Venture Builder, Antai. Historically, it also received support from Bonsai Venture Capital, Pedralbes Partners, among other investors.
This third round, led by Ignia Partners, will help the company strengthen its operations in its two biggest markets: Mexico and Colombia. Moreover, new funds have allowed GoTrendier to start new operations in Chile and Argentina.
On top of that, the company will be able to grow their technical and product team. This way, GoTrendier can add new features to increase user engagement and scale the company.
This round is important to strengthen our position in the markets in which we operate and reinforces our commitment to
create a more responsible fashion consumption alternative.
Going Forward
GoTrendier caters to female clients. Currently, they have 1.3 million users and a total of 1.5 million transactions valued at over US$47.8 million. Clients save approximately 70 percent per purchase since the items are used.
This also translates to a total of US$12 million worth of savings and more than 1,000 reduced tons of CO2 emissions.
So far, the company has grown 175 percent in the past two years with revenue coming from a 23 percent commission rate on each transaction. Over time, this grossed over US$4.5 million in 2018.
Although GoTrendier is a huge success in Mexico and Colombia, we’re going to see an interesting battle over the female clothing marketplace in the region.
While users make a significant income on the platform, the fact is that GoTrendier will have some competition with Renueva Tu Closet. This rival company already has a strong presence in Chile and Argentina.
Anyways, there’s clearly a need and a big market to satisfy.
-VC
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