Rebag Secures $15 Million In Series D Funding Despite The Dwindling Economy

Retail may be in a severe decline as the economic impact of the coronavirus has forced brick and mortar locations to close, caused advertising campaign production to come to a halt, and layoffs all around, but Rebag—the leading platform for buying and selling luxury handbags—managed to do the impossible. Despite the dismal economy, Rebag secured $15 million in a Series D funding round, making its total funding $68 million since CEO and founder Charles Gorra created the company in 2014. Private equity firm Novator led the investment, which also includes existing investor General Catalyst. 

“Over the last few years, we’ve witnessed the tremendous growth potential of the resale market,” says Novator partner Birgir Ragnarsson. “I am a firm believer in Rebag’s unique positioning, luxury expertise and cutting-edge innovation. By continuing to be a leader in the secondary market, Rebag bridges the gap between technology, luxury, and the future of retail.”

Rebag will use the funding for technology advancements like Clair by Rebag, the software tool that allows the company to appraise a handbag and generate an offer in an instant. Rebag will also continue to build on its Infinity Program, which allows consumers to purchase a handbag and trade it in for credit towards a new style in varying tiers. 

I spoke to Gorra about Covid-19’s effect on Rebag, what styles are selling well in spite of the virus’s spread, and what else he plans to do with the new investment. 

How has Covid-19 affected Rebag’s sales? What brands and styles are doing best?

 Although the pandemic has affected all of the fashion industry, consumers are still shopping resale. Overall, Rebag sales have been strong, and we had our best week to date in April, even larger than the Black Friday and Cyber Monday season.

 Lately, our top sellers include the LV Favorite Bag, the Chanel Classic Flap, and the Christian Dior Vintage Saddle Bag. The first two are versatile styles that appeal to many handbag lovers for their clean and memorable designs. Meanwhile, Dior’s Vintage Saddle Bag is popular due to its more accessible price point in comparison to the newer Saddle that was released in 2018.

 What about with those selling their bags to Rebag? Are more people letting go of their handbags in a time of crisis? What brands and styles are being sold to Rebag the most?

 Seller submissions have been steady, and we find that many sellers, both existing and new, are coming to Rebag because of how simple it is to sell to us while the majority of the US is under stay at home orders. Sellers receive an instant offer with Clair by Rebag by simply answering a few questions about their item; then, they can request a free shipping kit. We started to offer free UPS at-home pickups which has been very successful so you can sell safely from home. The entire process is seamless, plus you can opt for cash payment or site credit to put toward a new bag from Rebag.com. Right now, we’re encouraging sellers to submit our best sellers and other classic styles. We also revamped our price grids and increased some purchasing prices to provide the best offers to the seller.

 How have employees shifted with the restrictions?

 Like other retail businesses, Rebag has been adapting as quickly and thoughtfully as possible. There’s a huge shift to online business, and as a digitally-native company, we’re focusing on our digital footprint. Whether you’re buying, selling, or exchanging your luxury bags, all of it is accessible online.

 We’re ensuring that we’re meeting our customers where they are, so that they can easily access Rebag. For one, social media has been an important part of this: we’re encouraging user generated content, activating lively influencer partnerships with faces like Dorinda Medley of RHONY, and sharing educational resources in bite-sized pieces as our customers are actively seeking educational info on designers, handbags, and general resale knowledge. We’ve also ramped up personalized selling and shopping experiences with dedicated teams, so we can offer a VIP experience in a digital way.

 What does Rebag plan to do with the latest round of investment in addition to technological advancements? Will we see more brick and mortar or an international expansion?

 Technological advancements have always been the forefront of our business. Our goal is to simplify the buying and selling process so that all consumers can adopt circular fashion habits without experiencing any friction. This means focusing on developing Clair by Rebag even further, in addition to other changes we have been implementing, like our Infinity update from March 2020 or the site and native app improvements. Regarding Retail the priority in 2020 is on reopening our current stores.