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Dubai-based luxury resale marketplace The Luxury Closet announced on Sunday that it has raised $8.7 million in growth financing.
The financing was led by venture capital firm Middle East Venture Partners (MEVP), with participation from Wamda Capital, Precinct Partners, Tech Invest Com, Saned and Equitrust.
The company previously closed a $7.8 million Series B round in 2016 led by Wamda, along with MEVP, Equitrust, Saned and Arzan Venture Capital.
read more: Online marketplace The Luxury Closet raises $7.8 million in Series B funding
Founded in 2012, The Luxury Closet focuses on pre-owned luxury goods, with more than 60% of sales coming from brands that don’t discount items like Louis Vuitton, Chanel and Rolex.
Offering used items at an average discount of 60 percent off retail prices, the company currently has a catalog of 20,000 items and is adding more than $5 million worth of products every month, the company said in a statement.
In addition to individual sellers, some companies have also started to join the marketplace.
The statement added that the platform “invests heavily” in verifying product quality.
With the new funding, the company plans to expand its offering of exclusive sellers in the Middle East and build a network of buyers globally.
“We’re seeing a huge wave of how consumers view and buy luxury goods taking shape that will change the luxury industry forever,” said CEO and Founder Kunal Kapoor.
MEVP, the largest venture capital firm in the Middle East and North Africa region, received investment last year from Dubai-based businessman Mohamed Alabbar and has since invested in Turkish fashion retailer Modacruz.
Modacruz, a mobile marketplace for pre-owned women’s fashion in Turkey, has raised $2 million in a Series B round led by MEVP.
read more: Alabbar-backed venture capital fund MEVP invests in Turkish fashion retailer Modacruz
Also read: Dubai’s Alabbar takes ‘substantial’ stake in regional VC fund MEVP
MEVP’s investment is in line with Alabbar’s focus on fashion e-commerce in the region.
In 2016, the businessman signed a $138.5 million joint venture agreement with international online luxury fashion retailer Yoox Net-A-Porter (YNAP) to establish an online luxury retail presence in the Middle East.
read more: Dubai’s Alabbar inks $138.5m joint venture with luxury e-tailer Yoox Net-A-Porter
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