Yaga Secures €4M to Propel Secondhand Fashion Marketplaces Across Africa and the Middle East
Estonia-based Yaga, an innovative online marketplace dedicated to secondhand fashion, has successfully raised €4 million in a Pre-Series A funding round. This significant capital injection is set to fuel the company’s ambitious growth strategy, focusing on accelerating its presence and operations across the dynamic markets of the Middle East and Africa. This move underscores the escalating global demand for sustainable and affordable apparel, a trend Yaga is perfectly positioned to capitalize on in these fast-growing regions.
Strategic Expansion and Proven Profitability in the Circular Economy
The funding round was spearheaded by Specialist VC, with notable participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and several angel investors, signaling strong confidence in Yaga’s business model and future potential. This capital will be strategically deployed to enhance the platform’s features, expand operational reach, and effectively meet the surging consumer interest in sustainable fashion choices. Founded by Aune Aunapuu, Yaga has already established a robust footprint, particularly in its home country of Estonia and the burgeoning market of South Africa, demonstrating its capability to thrive in diverse environments.
Operating with a lean team of 25 individuals, Yaga distinguishes itself in the competitive e-commerce landscape by being profitable. The company boasts an impressive Gross Merchandise Volume (GMV) run rate exceeding €50 million, a remarkable achievement that positions it among a select few marketplaces in the region generating positive returns at this stage of development. Aunapuu emphasized the shifting consumer perception, stating, “Secondhand is no longer niche. It is becoming the better choice for consumers – better for wallets, better for the planet, and better for communities. And in the Middle East and Africa.” This highlights the intrinsic value proposition Yaga offers, appealing to both economic and environmental consciousness.
This €4 million investment marks a pivotal moment for Yaga, empowering it to scale its successful secondhand fashion marketplace model into critical African and Middle Eastern territories. By focusing on platform improvements and operational expansion, Yaga is poised to capture a substantial share of the burgeoning market for sustainable and affordable clothing. Its proven profitability and significant GMV run rate underscore a robust business foundation, paving the way for Yaga to solidify its position as a leading player in the global circular economy, particularly within the promising African tech landscape.
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