Thursday morning, online luxury consignment retailer The RealReal announced it has snagged $40 million in funding.
The investment round was led by Industry Ventures and included participation by the likes of e.ventures Growth, Greycroft Growth, DBL Partners, Canaan Partners and InterWest Partners, which increased the luxury consignment retailer’s funding to $83 million as reported by Forbes.
In a statement Wainwright said, “The new round of funding will be instrumental in allowing us to double our revenue while driving toward profitability, both of which are top priorities for the company in 2015. In addition, we’re laser-focused on scaling the business operationally and continuing to provide our members with the best authenticated luxury shopping and consigning experience anywhere.”
The way The RealReal works is individuals will first send in luxury items, which can either be picked up by a representative or shipped free of charge. The RealReal staff then authenticates whether or not the items are real or fake.
As stated on the site, “All items are put through a multi-point, brand-specific authentication process by a team of luxury experts headed by our Director of Authentication & Brand Compliance.”
The company inspects all luxury goods for appropriate brand markings, date codes, serial tags and hologram stickers. Each item has to pass through the authentication process. Fine jewelry and watches are appraised by the company’s gemologists and horologists. In addition, each piece receives a valuation certificate. Art items are meticulously researched and validated by The RealReal’s team of experts.
Once the items are authenticated, The RealReal will take the item even before it is sold. Once the item is sold, consignors keep 60 to 90 percent of the sale. Those who choose to sell items via The RealReal, be informed Wainwright only allows one accidental fake item per person. If a staff member discovers the item is indeed counterfeit it will be destroyed and not returned to the consignor.
It is the only site that authenticates item prior to re-selling.
Currently, The RealReal has a network of more than 3 million members and ships to 61 countries.
(Photo via The RealReal)