Grailed, a peer-to-peer fashion site, will continue to operate under its own brand and will integrate Goat’s operations infrastructure, including shipping and payments. The deal’s financial terms have not been disclosed.
Eddy Lu said Grailed offers unique items like rare Balenciaga jackets and vintage Coogi sweaters. Lu co-founded Goat Group and is the CEO.
Grailed joins more than a dozen other acquired retailers this year.
Goat Group executives say expansion into fashion and accessories is a “natural progression” for the company. They’ve also sought growth abroad, opening retail and warehouse facilities in Singapore, Tokyo, and Shenzhen, China, over the past year. In April, the company signed a deal for French football club Paris Saint-Germain to release new merchandise on its ecommerce platform.
Goat first invested in Grailed last year. It led a $60 million funding round along with Groupe Artemis and Gucci CEO Marco Bizzarri. Grailed wasn’t considering a sale at the time, according to a person familiar with the matter.
The resale landscape has changed since then. Fashion labels like Kering Inc.’s Balenciaga and Capri Holdings Ltd.’s Jimmy Choo moving to grab their own slice of a growing secondhand market. Coresight Research projects the market will hit $30 billion in the United States next year. Earlier this month, reseller Poshmark Inc. agreed to be acquired by South Korean internet giant Naver Corp. for $1.2 billion in a transaction analysts saw as a kickoff to more deals within the sector.
“We’ve been continuing to see growth across our businesses, especially in apparel and accessories, which have doubled the past 12 months,” said Lu. “When you’re looking to accelerate growth even further, that’s when consolidation makes sense.”
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