Tradesy raises $30 million for new-to-you fashion

Tradesy raises $30 million for new-to-you fashion

What's old is new again — new to you, at least — on Tradesy, a consignment platform boasting brands like Marc Jacobs, Michael Kors, Chanel, Louis Vuitton, Christian Louboutin, Jimmy Choo and Vera Wang. VC firm Kleiner Perkins is a fan of the Santa Monica startup, doubling down with a $30 million investment after leading a $13 million round in May. The deal, confirmed by Re/code, values Tradesy at $100 million "give or take $20 million."

Photo: formal dresses for women

The new financing marks a bit of a turnaround for an idea that had a hard time attracting investors at first, noted Re/code. Tradesy launched in October 2012 with a $1.5 million Series A, but an attempt to raise a Series B a year later fizzled. In the meantime, the company developed an algorithm to improve product descriptions and thus search results, and the startup grew enough to convince Kleiner Perkins to invest. Tradesy isn't profitable yet but hopes to be next year. Previous investors Richard Branson and Rincon Venture Partners also participated in the latest round.

The site and app, spun out of CEO Tracy DiNunzio's previous company Recycled Bride, applies the eBay model to clothing, shoes and accessories, connecting sellers of new and gently used fashion to buyers. The company facilitates payment through PayPal, provides shipping kits to sellers and handles all returns — all for a 9 percent commission.

Tradesy will use the influx of cash to add to its staff of 70, particularly in data science. Most of its sales come through organic traffic, but the company will also boost awareness with advertising including Google Product Listing Ads.

Read More: evening dresses uk