Proving that even fashion shows comes with a silver lining, Stella McCartney got green-fingered and sent guests a biodegradable silver foil envelope, …
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Reese Witherspoon's Most '90s Fashion Moments Ever. Before she was wearing gowns by Zac Posen and Stella McCartney, the "Big Little Lies" star …
Stella McCartney presented a new collection at Paris Fashion Week made from “upcycled” materials. The British designer's line, unveiled Monday …
GoTrendier, a peer-to-peer fashion marketplace operative in Mexico and Colombia, has raised $3.5 million USD to do just that. And investors are 5 million to take on Spanish-language fashion marketplaces 14 hours Thanks to environmentally conscious young buyers, throwaway culture is dying not only in the U.S. but also in Latin America and startups are poised to jump in with services to help people recycle used clothing. GoTrendier, a peer-to-peer fashion marketplace operative in Mexico and Colombia, has raised $3.5 million USD to do just that.And investors are eyeing the startup as the digital fashion marketplace growth leader in Spanish-speaking countries. GoTrendier, founded by Belén Cabido, is a platform that lets users buy and sell secondhand clothing. Cabido tells me that the new capital will enable GoTrendier to expand deeper into Mexico and Colombia, and launch in a new country: Chile. GoTrendier enables users to buy and sell used items through the GoTrendier site and app.The platform categorizes users as either salespeople or buyers. Salespeople create their own stores by uploading photos of garments along with a description and sale price.
Buyers browse the platform for deals and once a buyer bites, the seller is given a prepaid shipping label. Sound familiar? Businesses like Poshmark and GoTrendier have no actual inventory, which allows the companies to take on less of a risk by having smaller overhead costs.In turn, the company acts as more of a social community for fashion exchanges.In order to make money, Poshmark takes a flat commission of $2.95 for sales under $15. For anything more than that, the seller keeps 80 percent of their sale and Harvard Business School study.GoTrendier has a similar commission pricing strategy, taking 20 percent off plus an additional nine pesos (about 48 cents in U.S currency) for all purchases. But these companies are also largely venture-backed.In the case of GoTrendier, tGoTrendier amassed a user base of 1.3 million buyers and sellers throughout its four years of existence.
The service operates in Mexico and Colombia, and will use its newest capital to launch in Chile another market Cabido says is experiencing high demand for a secondhand fashion buying and selling service.Online marketplace companies are growing in Latin America as smartphone adoption and digital banking services multiply in the region.But international expansion has proven to be an issue. EnjoeiMany have remarked that Latin Americas tech scene is filled with copycats or companies that emulate the business models of American or European startups and bring the same service to their home market.
In order to secure bigger foreign investment checks, founders from growing tech regions like Latin America certainly must invent proprietary technologies. Yet theres still value and capital in so-called copycat businesses.
Why? Because the users are there and in some cases its just easier to start up.According to investor Sergio Pérez of Sabadell Venture Capital, The volume of the market for buying and selling second-hand clothes in the world was 360 million transactions in 2017 and is expected to reach 400 million in 2022.
A 2018 report from ThredUp also claimed that the size of the global secondhand market is set to hit $41 billion by 2022. The throwaway culture is disappearing thanks to environmentally conscious millennial buyers.As designer Stella McCartney famously said, The future of fashion is circular – it will be restorative and regenerative by design and the clothes we love never end up as waste.” By buying on GoTrendier, the company claims its users have been able to save USD $12 million and have avoided more than 1,000 tons of CO2 emissions.
Founders building companies in Latin America arent necessarily as capital-hungry as Silicon Valley-based founders, (where a Series A can now equate to $68 million, apparently). Cabido tells me her company is able to fulfill operations and marketing needs with a lean staff of 30, noting that theres a lot of natural demand for buying and selling used clothing in these regions, thus creating organic growth for her business.
She wasnt looking to raise capital, but investors had their eye on her. [Investors] saw the tension of the marketplace, and we demonstrated that GoTrendiers user base could be bigger and bigger, she says.With sights set on new markets like Chile and Peru, Cabido decided to move forward and close the round. Poshmark, which benefits from indirect and same-side network effects, has raised $153 million to date from investors like Temasek Holdings, GGV and Menlo Ventures.