A Dubai-based online platform that buys, sells and consigns pre-owned personal luxury goods at a discounted price has secured $2.2 million of its series A funding from regional venture capital investors.
The Luxury Closet, launched in 2011 by Kunal Kapoor, who is a former head of sales at Louis Vuitton, received the investment from the company’s seed stage investor, Middle East Partners (MEVP), as well as Dubai Silicon Oasis Authority (DSOA), twofour54, part of the Media Zone Authority Abu Dhabi, and MENA Venture Investments (MVI).
The support of four of the region’s leading venture capital firms is an endorsement of the start-up’s three-digit annual growth in revenue, and its ability to attract over half a million monthly visitors from some 50 countries.
“There’s a huge appetite for luxury in the Middle East. We found a gap in the market for a large-scale online luxury offering, centred on the most coveted, authentic, pre-owned personal luxury products,” Kapoor said while speaking about the company’s growth since the launch.
“The Luxury Closet filled that gap, creating a market place in the Middle East where the savvy and mobile consumers can buy and sell authentic luxury products via a convenient, safe and valuable service.”
This investment will help The Luxury Closet to scale its operations and expand its global reach.
About their commitment to The Luxury Closet, Walid Hanna, managing partner at MEVP, said: “As the first institutional investor in The Luxury Closet, back in 2012, we believed a pre-owned online luxury business had potential, and, today, we remain committed to helping the start-up become the dominant player in this market.”
The Middle East has the highest per capita spending on luxury goods estimated at approximately $1,900 per year, and a total value of $7.7 billion is expected to reach $15 billion in the following years.
Commenting on their decision to be part of this co-investment deal, Dr Mohammed Alzarooni, vice chairman and CEO of Dubai Silicon Oasis Authority (DSOA), added: “DSO is committed to supporting tech entrepreneurs and start-ups, particularly initiatives that focus on mobile e-commerce, apps, or internet technology.
“As demonstrated by its remarkable growth to date, The Luxury Closet has the potential to serve as a truly global online marketplace for luxury and fashion products in the Middle East. We are glad that our investment will help accelerate the start-up’s pace of development and innovation.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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