Yaga Secures €4M to Fuel Global Second-Hand Fashion Expansion
October 22, 2025, 3:36 am
Tallinn-based Yaga, a leading online marketplace for second-hand fashion, recently closed a €4 million pre-Series A funding round. Specialist VC led the investment, with H&M Group also participating. This capital infusion brings Yaga's total funding to €7.2 million. The company aims to accelerate its global expansion, particularly into the Middle East and North Africa regions. Yaga already commands the market in South Africa, boasting millions of monthly visits. Its platform champions affordable, sustainable consumption. The move positions Yaga at the forefront of the booming $367 billion global second-hand apparel market. This significant funding underscores investor confidence in circular fashion and Yaga's efficient, scalable model for mainstream adoption.
Yaga, an Estonian fashion technology firm, just announced a significant financial milestone. It successfully raised €4 million in a pre-Series A funding round. This crucial investment brings Yaga's total capital to €7.2 million. The funding signals strong investor belief in the burgeoning second-hand apparel market. It highlights Yaga's potential for global impact.
Specialist VC spearheaded this investment round. H&M Group also participated, demonstrating interest from major industry players. Trind Ventures and Startup Wise Guys joined the funding. Several angel investors contributed as well. This diverse investor base reflects broad confidence in Yaga's business model. The capital will power Yaga's ambitious expansion plans.
The global second-hand apparel market is exploding. It reached an estimated $227 billion in 2024. Projections indicate massive growth. The market is expected to hit $367 billion by 2029. This upward trend positions companies like Yaga for significant success. Resale platforms are no longer niche. They have become mainstream shopping destinations. Consumers increasingly seek affordability and sustainability. Second-hand fashion directly addresses these growing demands.
Yaga has proven its market leadership. It operates the top resale platform in South Africa. The company attracts over 12 million monthly visits across its markets. This demonstrates impressive user engagement and reach. Yaga has doubled in size annually. It boasts a Gross Merchandise Volume (GMV) run rate exceeding €50 million. The company is now profitable. This profitability, achieved with a lean 25-person team, highlights remarkable operational efficiency. It validates Yaga's scalable business strategy.
The platform offers a secure and user-friendly experience. Escrow-based payments protect both buyers and sellers. Localized logistics further enhance transactions. Items typically sell for 50-80% below new retail prices. This improves fashion accessibility. It also promotes more sustainable consumption habits. Over six million items have found new owners through Yaga. Sellers have collectively earned over €80 million. This activity significantly extends clothing life cycles. It reduces textile waste, benefiting the environment.
Yaga plans strategic expansion. The new funding will primarily target the Middle East and North Africa (MENA) regions. These markets offer immense untapped potential. The company sees robust economic opportunities for local sellers there. Expanding into MENA aligns with Yaga's mission. It aims to foster sustainable consumption globally. The investment will also support team growth. It will further develop existing markets. Yaga seeks to strengthen its presence where it already thrives.
The broader European market is seeing an investment surge in circular fashion. Yaga’s funding round reflects this trend. Other European startups are also gaining traction. Faume in France secured €8 million to scale its brand-partner resale platform. It plans AI-driven pricing tools. Austria’s Minimist raised €350,000. This capital will develop machine-learning software for second-hand inventory management. This shift indicates a broader investor focus. Attention is moving from luxury recommerce to mainstream second-hand adoption tools and marketplaces.
Yaga’s success demonstrates a clear market shift. Sustainable fashion is now a global movement. It is not limited to specific regions. Consumers everywhere seek value and responsibility. Yaga provides a vital bridge. It connects buyers with affordable, preloved items. It empowers sellers to generate income. The company builds a future where fashion is circular. This benefits both people and the planet. Yaga’s platform is a key player in this evolution. Its secure transactions, broad reach, and commitment to sustainability position it strongly for continued global growth. The recent funding ensures Yaga can pursue its vision with vigor.
Yaga, an Estonian fashion technology firm, just announced a significant financial milestone. It successfully raised €4 million in a pre-Series A funding round. This crucial investment brings Yaga's total capital to €7.2 million. The funding signals strong investor belief in the burgeoning second-hand apparel market. It highlights Yaga's potential for global impact.
Specialist VC spearheaded this investment round. H&M Group also participated, demonstrating interest from major industry players. Trind Ventures and Startup Wise Guys joined the funding. Several angel investors contributed as well. This diverse investor base reflects broad confidence in Yaga's business model. The capital will power Yaga's ambitious expansion plans.
The global second-hand apparel market is exploding. It reached an estimated $227 billion in 2024. Projections indicate massive growth. The market is expected to hit $367 billion by 2029. This upward trend positions companies like Yaga for significant success. Resale platforms are no longer niche. They have become mainstream shopping destinations. Consumers increasingly seek affordability and sustainability. Second-hand fashion directly addresses these growing demands.
Yaga has proven its market leadership. It operates the top resale platform in South Africa. The company attracts over 12 million monthly visits across its markets. This demonstrates impressive user engagement and reach. Yaga has doubled in size annually. It boasts a Gross Merchandise Volume (GMV) run rate exceeding €50 million. The company is now profitable. This profitability, achieved with a lean 25-person team, highlights remarkable operational efficiency. It validates Yaga's scalable business strategy.
The platform offers a secure and user-friendly experience. Escrow-based payments protect both buyers and sellers. Localized logistics further enhance transactions. Items typically sell for 50-80% below new retail prices. This improves fashion accessibility. It also promotes more sustainable consumption habits. Over six million items have found new owners through Yaga. Sellers have collectively earned over €80 million. This activity significantly extends clothing life cycles. It reduces textile waste, benefiting the environment.
Yaga plans strategic expansion. The new funding will primarily target the Middle East and North Africa (MENA) regions. These markets offer immense untapped potential. The company sees robust economic opportunities for local sellers there. Expanding into MENA aligns with Yaga's mission. It aims to foster sustainable consumption globally. The investment will also support team growth. It will further develop existing markets. Yaga seeks to strengthen its presence where it already thrives.
The broader European market is seeing an investment surge in circular fashion. Yaga’s funding round reflects this trend. Other European startups are also gaining traction. Faume in France secured €8 million to scale its brand-partner resale platform. It plans AI-driven pricing tools. Austria’s Minimist raised €350,000. This capital will develop machine-learning software for second-hand inventory management. This shift indicates a broader investor focus. Attention is moving from luxury recommerce to mainstream second-hand adoption tools and marketplaces.
Yaga’s success demonstrates a clear market shift. Sustainable fashion is now a global movement. It is not limited to specific regions. Consumers everywhere seek value and responsibility. Yaga provides a vital bridge. It connects buyers with affordable, preloved items. It empowers sellers to generate income. The company builds a future where fashion is circular. This benefits both people and the planet. Yaga’s platform is a key player in this evolution. Its secure transactions, broad reach, and commitment to sustainability position it strongly for continued global growth. The recent funding ensures Yaga can pursue its vision with vigor.