“Secondhand fashion is no longer a niche” – Yaga raises €4 million for its online marketplace and to expand globally

Estonian social e-commerce platform Yaga has secured €4 million in a pre-Series A funding round, bringing its total funding to €7.2 million. The investment, led by Specialist VC with participation from H&M Group, Trind Ventures, StartupWiseguys, and angel investors, signals growing investor interest in Europe's secondhand fashion sector. The funding will fuel Yaga's expansion into the Middle East and North Africa, building on its success in South Africa. Yaga, founded in 2017, operates a social e-commerce marketplace for second-hand fashion and has seen significant growth, achieving a €50 million+ GMV run rate. The company's platform, which is currently profitable, has facilitated over €80 million in earnings for sellers. Over 6 million items have been resold, emphasizing the circular economy. This investment underscores the mainstreaming of secondhand fashion, offering affordability and sustainability. This development is part of a broader trend, as evidenced by recent investments like Faume's €8 million funding and Minimist's €350k raise for AI-driven pricing and inventory management. Yaga's expansion highlights the shift toward platforms supporting broader secondhand adoption.