Today The RealReal has demonstrated its dominance in the luxury consignment space. The San Francisco-based company has raised $50 million in growth equity funding.
The investment came from private equity firm Great Hill Partners, bringing the company’s total funding to $173 million.
As part of the investment, Michael Kumin, managing partner of Great Hill Partners, will join The RealReal’s board of directors.
“The RealReal has established itself as an innovator in the luxury category delivering significant value to both consignors and buyers,” Kumin said in a release. “We are excited to work with Julie [Wainwright] and The RealReal’s talented management team, leveraging Great Hill’s experience in helping scale leading ecommerce companies.”
Wainwright launched The RealReal in 2011 as an online luxury consignment shop. Since then the company has expanded with physical consignment valuation offices in New York, Los Angeles and Chicago, and now ships to 61 countries.
According to RealReal executives, the company is expected to pay consignors close to $300 million from the resale of their luxury items this year, a bit unsurprising considering the company released a report on how certain consigned luxury brands drive sales of luxury brands on retail.
The company hosted its first pop-up shop in New York City last December during the holiday season and has plans to open a brick and mortar in the near future.
“Six years in, The RealReal continues to expand in exciting ways and this incremental capital will be instrumental in supporting the business and our continuous growth,” Wainwright said in a statement.
The new investment will be used to continue to scale the company’s operations, category expertise and expansion of its luxury consignment offices and retail concepts.