Pre-owned online shopping firm Fashionphile has raised $38.5 million in NewSpring Growth-led Series B funding. The infusion comes after the April 2019 minority investment of Neiman Marcus in the company, which is geared toward “ultra-luxury” handbags, high-end jewelry and timepieces, according to an announcement.
"Over the past 20 years, we've developed the largest luxury inventory in the industry, created cutting-edge reCommerce technology, and have led the way in authentication excellence,” Fashionphile CEO Ben Hemminger said in the announcement. “We're now excited to put the funds from this raise to work to increase awareness and introduce more luxury shoppers to Fashionphile and the joys and benefits of the circular economy.”
Fashionphile, which was started in 1999, says it is renowned for its inventory of handbags as well as accessories, as well as its "best-in-class authentication" and its direct buyout system. The company noted that its retail collaboration with Neiman Marcus has connected the primary and secondary market via its reCommerce system, authentication technology and proprietary pricing formula.
Fashionphile noted that the funding will fuel its “operational and geographic scale,” as it aims to continue growing its omnichannel presence and making regional fulfillment hubs in the U.S. and other countries. The funding will also help boost advancement throughout the company’s collection of proprietary systems, with an emphasis on artificial intelligence (AI) and bolstered automation.
NewSpring Principal Hart Callahan said in the announcement, “reCommerce is growing exponentially, and with Fashionphile's one-of-a-kind technology and decades of experience with designer goods, it is a perfect fit for NewSpring Growth.”
In separate news, luxury technology company Farfetch raised $250 million from Dragoneer and Tencent via the sale of convertible senior notes. Dragoneer is a California-based investment company, while Tencent is a China-based worldwide technology firm. Each company was to buy $125 million of the notes. Farfetch was to harness the capital to keep expanding and growing into new markets, particularly China, while Tencent was assisting the firm in reaching the market via its WeChat system. Farfetch had more than 80 high-end labels on WeChat, including Ralph Lauren, Saint Laurent and Armani, among others, per news at the time.