Odds are if you love designer items but can’t afford the coinciding price tag, you’ve heard of The RealReal, an online consignment shop specializing in high end fashions, jewelry, and décor for the home. Recently, Julie Wainwright, CEO and founder of The RealReal, began a new endeavor to raise additional funding for the company in the amount of $100 million.
Given Wainwright’s previous statements that she would no longer be seeking private investments as she had already raised $170 million, we can only assume the company needs financial help to stay in business long-term, or that Wainwright and her investors realized that the concept of The RealReal could be expanded to become an even greater share holder of the market. They have opened a storefront in New York, and the luxury brands have ceased viewing The RealReal as an enemy and have embraced them as another avenue to further boost their sales. With that said, the latter seems most likely in regards to their new funding. Wainwright has not made any comments publicly as to why, but she is sure to unveil her reasons to the public soon.
With The RealReal’s yearly revenue in the hundreds of millions of dollars, it is certainly a strong competitor in the online market, right alongside eBay, ThredUp, Poshmark, and Tradesy. Forbes has estimated the company’s value at $300 million dollars. This is no doubt greatly attributed to Julie Wainright, who has been in the e-commerce business more than 30 years, and has been the CEO of multiple companies, including Berkeley Systems, Reel.com, and Pets.com, prior to delving into the designer fashion business with The RealReal.
Another thing that The RealReal seems to be hitting a home run with is their mobile app sales. While some companies feel the app is no longer an integral part of their business, this fashion forward company is bringing in over $100 million a year in app sales. I’m not surprised that they’re doing so well. With the company’s authenticity guarantee, convenience of app buying, an experienced and knowledgeable CEO, they’re certain to be around for many years.