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Premiere Luxury Reseller, The RealReal, Looks to Secure an Additional $100 Million in Funding

“The RealReal, an authenticator and purveyor of luxury resale items, is looking to secure another $100 million dollars in funding. This comes in spite of the fact that for several years, CEO Julie Wainright has indicated that each round of fundraising would be the last before an IPO. The RealReal has already secured $170 million in the seven years since its launch.

One reason for a delay in going public may be that the company believes that they are not yet at an attractive enough point to appeal to investors in a public offering.

However, another possible reason for the delay in going forward with an IPO could be due to the fact that the company and their investors see the luxury resale market as much larger than they had initially thought. Perhaps they are waiting for further growth and value before going public, in the hope of taking a larger market share.

The RealReal is one of only a few businesses dedicated to the resale of luxury items which has managed to survive and thrive as they seek to draw some of Ebay’s massive customer base. The RealReal’s initial focus was centered primarily around women’s luxury clothing and handbags, but has rapidly moved into menswear, home furnishings, and jewelry. In fact, many luxury brands are swallowing their initial distaste as they recognize the value of the cyclical nature of The RealReal.

The RealReal’s success could be largely attributed to the trust consumers place in the company and the veracity of the items they’re purchasing. The RealReal employs gemologists, art curators, watch experts, and brand authenticators, who work to ensure the authentication of the items they purvey. If an item happens to slip through the rigorous process, The RealReal is extremely proactive in rectifying the situation and satisfying the customer.

The success of The RealReal’s pop-up shops, staffed with several of their experts, has led to the eventual opening of their first brick and mortar store set to open soon in New York City.

Whether The RealReal decides to go public or not, this is an exciting company to watch.”

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