As consumers increasingly see the possession of clothing as more temporary, fashion re-commerce is picking up. However, fashion brands leave the entire second-hand market to C2C marketplaces. Attempting to change this and bring about transparency in the system, Berlin-based Recommerce-as-a-Service startup reverse.supply has raised €5 million funding.
The seed round saw the participation of early-stage VC Capnamic and existing investors, including Push Ventures, Dutch Founders Fund and angels and industry experts such as Julia Bösch (Outfittery) and Marcus Börner (rebuy).
The funding will be used to further build the team, technological platform and customer acquisition.
Founded in 2021 by Janis Künkler, Max Große Lutermann and Konrad Hosemann, the company enables fashion brands and marketplaces to access the second-hand market for their own products. Through its own logistics center in Berlin, the platform takes over the complex operational and technical processes that arise when reselling used products.
With the platform, fashion brands can set up their own purchase portal for second-hand clothing and use the AI-driven grading system for quality control and price determination.
Janis Künkler, co-founder and managing director, reverse.supply said: "Recommerce is critical to making the fashion industry more sustainable and has become a must-have for brands to meet contemporary customer needs."
By taking over the complete re-commerce process, companies can easily monitor the quality and longevity of their products even after leaving their own production facilities in the first sale. Brands are thus able to tap into new target groups, lead customers back to their own webshop and gain long-term control over the entire life cycle of their products.
Max Große Lutermann, co-founder and managing director, reverse.supply added: "The resale of fashion is more costly compared to other product groups and that with low margins. We aim to change this situation."