Tuesday 31, July 2018 by Bloomberg

Middle East start-up The Luxury Closet gets new funds

 

The Luxury Closet, a website for buying and selling second-hand luxury goods, has received fresh backing from a group of Middle Eastern venture capital investors as it seeks to expand beyond the region.

The Dubai-based site has a 20,000-product catalogue ranging from EUR 45,130 ($52,660) ostrich leather Hermes handbags and Cartier wristwatches priced at EUR 14,726 to pink Gucci blouses for EUR 465. The company aims to use the funding to increase buyers and sellers on its platform.

Middle East Venture Partners, based in Dubai and Beirut, led the $8.7 million funding round, according to a statement from Luxury Closet. Precinct Partners, Wamda Capital, and Equitrust, among others, also invested.

Sellers using Luxury Closet send their products to the company to keep in a temperature-controlled warehouse until they are bought, while the company’s “authenticity experts” certify quality. Chief Executive Officer Kunal Kapoor founded the website, labelled as an online boutique for “pre-loved luxury items,” and has a workforce of 80 people.

More established luxury companies are also expanding in the sector. In June, Richemont, the owner of Cartier and IWC luxury timepieces, purchased Watchfinder, an internet-based retailer that specialises in used watches.

Delta Partners Group acted as adviser on the funding round.

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