LUXURY PROMISE SECURES $3.75M SERIES A LED BY PROVEN VCTs TO HARNESS $24BN LUXURY RESALE MARKET
22 Apr 2020
London, 22 April 2020: The ProVen VCTs have led a $3.75m investment into Luxury Promise, a rapidly growing marketplace for the resale of luxury handbags and accessories. The Series A round was also backed by existing investor Lloyd Amsdon, co-founder of Watchfinder, the leading platform for pre-owned premium watches acquired by Richemont in 2018.
Luxury Promise was founded in 2017 by Sabrina Sadiq, a highly experienced authenticator of luxury goods. The business has since scaled successfully, with operations in London and Dubai, and an outstanding selection of luxury brands including Hermes, Chanel, Louis Vuitton, and Van Cleef.
Growing consumer demand for sustainable fashion has enabled the resale market to grow at pace. In the US, resale has grown 21 times faster than the retail apparel market over the past three years, reaching a value of $24bn today, which is projected to increase to $51bn by 2023, according to GlobalData. This trend is particularly prominent among millennial and Gen Z consumers, with 62% of these demographics preferring to buy from sustainable brands, according to First Insight.
Luxury Promise enables consumers to shop sustainably for pre-owned luxury goods, with a focus on handbags. In addition to paying sellers cash up front for their items, Luxury Promise goes through a rigorous quality and authentication process, providing in-house expert repairs and finishing to pre-loved goods where needed.
This round of investment will be used to broaden the offering available on the Luxury Promise marketplace, expand the repairs and workshop expertise, and open a storefront location.
Sabrina Sadiq, founder and CEO of Luxury Promise, commented: “We are very proud of the platform we have built at Luxury Promise, having become the go-to luxury retailer for discerning clients with a focus on sustainability. We are delighted to have partnered with Beringea and Lloyd Amsdon, both of whom provide a strong endorsement of our achievements to date and additional capital to enable us to maintain our strong momentum”.
Karen McCormick, Chief Investment Officer of Beringea, the manager of the ProVen VCTs, commented: “Luxury re-sale is a space we have followed for a number of years, and Sabrina’s focus on authenticity, long-term customer relationships, and highest quality product really set Luxury Promise apart from competition. The forward focus on in-house repairs and inventoried product is a further differentiator.”
Beringea has previously backed several pioneers in retail and luxury goods, including Monica Vinader, the leading jewellery brand, and Watchfinder, a platform for buying, selling, and repairing pre-owned luxury watches, co-founded by Lloyd Amsdon, an early backer of Luxury Promise. During Beringea’s investment, Watchfinder scaled to become the UK’s fourth largest watch retailer before its acquisition by Richemont, the Swiss luxury goods group, in 2018.