The RealReal, an online consignment store for luxury goods, has raised $14 million in Series B funding led by InterWest with Canaan Partners, e.ventures, Greycroft Partners, Novel TMT Ventures, Panarea Capital, Suzy Welch and Sukhinder Singh Cassidy participating.
The service lets consignors sell their designer goods online and get up to 70 percent of the sale price, while customers get brands like Chanel and Burberry at lower prices. And The RealReal authenticates all of its designer goods so that customers know they’re getting the original.
Each sale lasts for 72 hours, and members can also pay to shop 24 hours in advance of sales ($5 per month). That model, says founder and CEO Julie Wainwright, works well. Already 5,000 members (out of 750,000 members total) are paying $5 per month to get a head start on sales by a day.
She adds that the company is growing fast, and even has a number of celebrities who sell through the site. The RealReal, which faces competition from eBay, is seeing around 1,000 new items added to its warehouse per day. Last year, revenue grew tenfold.
The new funding will be used to expand the company’s technology and infrastructure, with plans to add new features like search, a mobile app and personalization.