Estonian startup Yaga, a rapidly expanding platform for secondhand fashion, has secured €4 million in a pre-Series A investment round. The fresh capital will support its expansion into markets across the Middle East and North Africa
The round was led by Specialist VC, with participation from H&M Group, Trind Ventures, Startup Wise Guys, and a group of angel investors. With the new funding, the company is exploring expansion opportunities primarily in the Middle East and North Africa region. The funding will also support further team growth and the development of existing markets.
“Second-hand fashion is no longer a niche – it’s becoming the first choice for millions of people who want both affordability and sustainability.”
Aune Aunapuu, CEO and Founder of Yaga
“Second-hand fashion is no longer a niche – it’s becoming the first choice for millions of people who want both affordability and sustainability. Our growth in South Africa proves that this is a global movement, not limited to Europe or the US,” said Aune Aunapuu, CEO and Founder of Yaga.
“With this funding, we will explore new expansion opportunities as we continue to build the sustainable fashion marketplace of the future,” added Aunapuu. This funding brings Yaga’s total funding to €7.2 million.
The platform powers affordable, eco-friendly fashion
The company is a social e-commerce company that makes it easy for people to buy and sell second-hand fashion. The global second-hand apparel market is projected to grow from $227 billion in 2024 to $367 billion by 2029, placing Yaga at the centre of this expanding sector. Founded in Estonia in 2017, Yaga is expanding into new markets, attracting over 12 million monthly visits.
Over recent years, the company has doubled in size annually, reaching a €50 million+ GMV run rate. The company is now profitable and has achieved this scale with a 25-person team and €3.2 million in funding raised prior to this round, demonstrating the efficiency of its model and strong market demand.
Yaga’s platform is designed to be safe and user-friendly, offering an escrow-based payment system and localised logistics to protect buyers and sellers. Items are typically 50-80% cheaper than new, making fashion more accessible while helping reduce the industry’s environmental footprint.
Yaga leads fashion resale in Africa
Yaga has built a particularly strong presence in South Africa, where it has become the leading online fashion resale platform. Globally, sellers have earned more than €80 million to date, and more than 6 million items have found new owners, extending their life and reducing textile waste.
“Their presence on the African continent is also a strong complement to H&M Group’s existing secondhand initiatives in other parts of the world.”
Nanna Andersen, Managing Director of H&M Group’s business area New Growth & Ventures
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for preloved fashion – one of the fastest-growing business sectors within the fashion industry,” said Nanna Andersen, Managing Director of H&M Group’s business area New Growth & Ventures. “Their presence on the African continent is also a strong complement to H&M Group’s existing secondhand initiatives in other parts of the world.”
GOOD TO KNOW
- In 2024, Yaga won the GreenTech Award at Estonian Startup Award´s 2024.
- Yaga is a marketplace for buying and selling secondhand fashion with a focus on Africa. In Africa, Yaga has a first mover advantage and 1B€ GMV potential.
- They strongly believe in the future of fashion resale, benefiting sellers, buyers, and the environment.
- More than 6 million secondhand items have been sold on Yaga to date, meaning the same amount of items has been left unbought as new.
- As market leaders in Estonia and South Africa, Yaga recently expanded to Kenya.
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