“The RealReal is a fashion website founded in 2011 by Julie Wainwright, a San Francisco based e-commerce entrepreneur. The company specializes in selling of authentic second hand popular designer clothings, watches, jewelries etc.
The business started as a website which focused on women’s luxury fashion but now has expanded into selling of menswear, art, watches, jewelry etc . Their mode of operation has to do with luxury consignment sales, where sellers ship goods to the company RealReal, and the company in return sells the shipped items and shares the proceeds with the sellers.
In order to ensure that all items sold are authentic, The company employs an in-house authentication team whose job is to review every item so as to safeguard against fake products before they get listed on the website.
The RealReal business has been booming since inception. The company which started only in Francisco, keeps expanding across the USA and has opened about six valuation offices in the last 18 months, located in New York, L.A., Chicago, and Washington, D.C. The RealReal have over 800 employees across the country and has made about $123 million in venture funding by 2017. With the goal of achieving $500 million in gross merchandise value at the end of this year, 2018
The CEO of RealReal, Julie Wainwright recently announced her intentions to raise a fresh $100 million funding for a new investment. Over time, Julie Wainwright has indicated that she won’t be financing another investment after her company’s next round of private financing. But surprisingly, she is planning to embark on a new investment.
Looking at this decision of funding a new investments, its not clear what the reasons were, but one could easily guess it’s probably as a result of the expansion of the secondhand market for luxury goods which poses good opportunities for RealReal than they earlier thought.
It can also on the other hand, be that the RealReal company is yet to reach the primary target of their investments into the second hand market for luxury goods. Thus the need to pump in more capital to help the business expand to satisfaction in the nearest future.”