The announcement that the Real Real’s next round of private financing is the last before the company becomes an IPO has become music to our ears because the company often goes on and secures another investment before making the IPO move. However, according to a recent financing move made by the Real Real’s CEO, Julie Wainwright, this time the case might be different. According to various Recode secret sources, Mrs. Wainwright recently made a $100 fundraising pitch to various prominent investors for a new funding project.
Even though the motive behind the fundraising is not yet clear because the RealReal’s CEO Mrs. Wainwright is yet to release a public announcement stating the reasons, already there are various speculations making rounds online. For instance, some people think that the RealReal is making the pitch so it can use the money and fuel itself to an appealing level for public investors and buyers.
Alternatively, it could be also pitching this fundraiser because it has realized that the market in which it operates in is much broader than it initially thought. In respect to that if it successfully manages to raise the money, then the company in conjunction with the participating investors will be able to successfully expand their horizons by investing in more growth.
About the RealReal
The RealReal is a household name in the world of fashion and specializes in second-hand luxury consignments. As mentioned, it operates under the consignment model in which sellers send second-hand luxury clothes from brands such as Louis Vuitton, Prada and Gucci to it and in return it markets and sells them at a certain price. After this, the proceeds are often divided at a rate of 50 to 60% between the RealReal and the individual.
It was established in 2011 by Julie Wainwright and initially, it was a women’s luxury fashion company but business seems to be doing quite well because since then it has ventured into other areas of fashion such as jewelry, menswear, home décor, and art.
However, it has not been all sunshine and rainbow for the RealReal as it had quite a rough start. For instance, most luxury clothing companies often considered it the enemy as it would make sales out of their second-hand products.
Fortunately, times have changed and now most of them are now embracing its concept as it helps them increase their sales. It does so by boosting the value of second-hand products which in turn encourages shoppers to see even more value in buying them firsthand.
Today the company is quite successful and has generated over $173 million in revenue since its inception. It is also trusted by hundreds of its customers for selling original products. It ensures that all the products it receives for selling or original by carrying out a thorough authentication process before accepting them as part of its inventory. It has both a physical and an online shop in New York and boasts quite a state of the art physical store whose interior was designed by the famous Courtney Applebaum.
Read more about The RealReal: https://www.youtube.com/channel/UCjD1O1piK6HoiZ-70sfkHpg