Secondhand Fashion Marketplace Yaga Secures €4 Million for Global Expansion Drive

European Secondhand Fashion Platform Expands Globally

Tallinn-based Yaga, a rapidly growing online marketplace for pre-owned fashion, has reportedly raised €4 million in a pre-Series A funding round, bringing its total funding to €7.2 million. According to reports from EU-Startups, the investment will primarily support the company’s expansion into Middle Eastern and North African markets while strengthening its existing operations.

European Secondhand Fashion Platform Expands Globally
Investment Consortium Backs Circular Fashion Vision
Secondhand Fashion Goes Mainstream
European Resale Sector Shows Momentum
Proven Growth and Market Traction
Sustainable Fashion with Economic Benefits
Strategic Expansion Plans

Investment Consortium Backs Circular Fashion Vision

The funding round was led by Specialist VC, with participation from fashion retail giant H&M Group, Trind Ventures, StartupWiseguys, and several angel investors. Analysts suggest this investment signals growing confidence in the circular fashion sector’s potential beyond traditional Western markets.

Nanna Andersen, Managing Director of H&M Group’s business area New Growth & Ventures, stated in the report: “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. Their presence on the African continent is also a strong complement to H&M Group’s existing secondhand initiatives.”

Secondhand Fashion Goes Mainstream

According to company statements, secondhand fashion is transitioning from niche interest to mainstream shopping behavior. Aune Aunapuu, CEO and Founder of Yaga, emphasized this shift: “Secondhand fashion is no longer a niche – it’s becoming the first choice for millions of people who want both affordability and sustainability.”

Market data appears to support this assessment. Reports indicate the global second-hand apparel market grew by approximately 15% in 2024, reaching $227 billion, with projections suggesting it could expand to $367 billion by 2029.

European Resale Sector Shows Momentum

Sources indicate Yaga’s funding round occurs alongside increased investment activity across Europe’s second-hand and circular fashion sectors. In France, Faume reportedly secured €8 million in April 2025 to expand its brand-partner resale platform, while Austria-based Minimist raised €350k in January 2025 to develop inventory management software for secondhand sellers., according to recent innovations

Industry observers suggest investor attention is broadening from luxury-focused recommerce platforms to tools and marketplaces supporting mainstream second-hand adoption. Yaga’s position as Estonia’s prominent resale startup reportedly highlights this regional trend toward diversified circular fashion investments.

Proven Growth and Market Traction

Founded in 2017, Yaga has demonstrated remarkable growth, reportedly doubling in size annually and reaching a €50 million+ GMV run rate. The company claims to have achieved profitability with a lean 25-person team, having raised only €3.2 million prior to this current round.

The platform has built particularly strong momentum in South Africa, where it has become the market-leading online fashion resale destination. Company reports indicate Yaga receives over 12 million monthly visits, with sellers having earned more than €80 million to date and more than 6 million items finding new owners.

Sustainable Fashion with Economic Benefits

Yaga’s platform is designed to make secondhand fashion accessible and secure, featuring an escrow-based payment system and localized logistics. Items are typically priced 50-80% cheaper than new equivalents, making fashion more affordable while reducing the industry’s environmental impact through extended clothing lifespans.

“Our growth in South Africa proves that this is a global movement, not limited to Europe or the US,” Aunapuu added in the report. “With this funding, we will explore new expansion opportunities as we continue to build the sustainable fashion marketplace of the future.”

Strategic Expansion Plans

The new capital will reportedly support Yaga’s exploration of opportunities primarily in the Middle East and North Africa region, building on the company’s successful expansion into emerging markets. The funding will also enable further team growth and development of existing market operations.

This expansion strategy appears consistent with the company’s previous growth pattern, having successfully established market leadership in South Africa after initial development in Estonia. The move suggests confidence in applying their social e-commerce model across diverse international markets.