Fashion startup, Yaga has just raised €2.2 million for its social e-commerce platform.
The Estonian-born startup, which recently stretched its services to Kenya and India aims to integrate technology with second-hand fashion in emerging markets.
Launched in 2019 by Aune Aunapuu, Yaga allows people to buy and sell second-hand fashion and operates in growing markets in Asia and Africa.
” It gives people the fashion they want, at the prices they want, and without the harm inflicted on the planet, it’s also empowering entrepreneurial spirit in local communities,” said Ms Aunapuu.
The Co-founder and Chief Executive Officer (CEO) of Yaga added that there is a huge future for pre-loved fashion in emerging markets like Africa and Asia.
“We are big believers in the circular economy, and it’s great to see thrifting come into fashion thanks to influencers and social media. There’s also a huge economic opportunity in second-hand fashion, being able to both make and save money on Yaga. We are excited about the potential impact we can have on South Africa and beyond,” she added.
A report by the Institute of Economic Affairs and Mitumba Consortium Association of Kenya indicates that 91.5 percent of households across the country bought second-hand clothes well known as mitumba in the year 2019.
According to the 2022 resale report by ThredUp, the largest online thrift and consignment store, the global second-hand market is expected to grow to US$36 billion by 2024 and more than US$200 billion by 2026.
Tech is no doubt helping fuel the second-hand fashion revolution where startups aim to provide a channel that will help minimize fashion waste and also make it easy for people to access quality second-hand products online.
Yaga funding round led by Estonian Startup Wise Guys. Other participants in the round included Trind Ventures, Specialist VC, and Rubylight.
They were also supported by angel investors such as the CEO of Bolt, Markus Billing.
Other angel investors include figures with backgrounds in Wise, Veriff, Katana and Klaus.
According to reports, it’s now one of South Africa’s most popular online fashion platforms, receiving over 5 million visits per month.