Second look at consignments

May 28, 2020

Walmart on Wednesday announced a partnership with the resale platform ThredUp to sell previously-owned branded clothing, shoes, handbags, and more online. This deal marks the first foray by Walmart, the world's largest retailer, against the resale market.

The company said it started planning the ThredUp project a year ago and launched it at a time when the pandemic has forced many households to become even more budget-conscious amid widespread furloughs and job losses. Moreover, Millennials and Z’ers are more environmentally conscious. Up-cycling and thrifting have gained a certain cachet among the young.

Riding the conscious fashion and frugal trends is certainly wise for Walmart. However, many passionate customers of ThredUp also worry that their beloved brand will end up gutted and disposed of, as have so many of Walmart’s previous acquisitions and partnerships. Only time will tell.

Amazon is in advanced talks to acquire Zoox in a move that would expand the company's reach in autonomous vehicle technology, WSJ reports. The companies are discussing a deal that would value Zoox at less than the $3.2B it achieved in a funding round in 2018, according to the report. Zoox has been working to develop the hardware and software needed to create electric-powered robot taxis that, starting this year, would be summoned by a smartphone app.

Amazon has been working on autonomous driving for some time. A few years ago, the company created a team devoted to driverless-vehicle technology, motivated in part by a push to transport more of its goods itself. It has made several investments in the area, including last year when it participated in autonomous-technology firm Aurora Innovation Inc.’s $530M funding round.

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Second-Hand, First-Class Potential:

Rebag is a private company that owns and operates an online marketplace for buying and selling luxury handbags. It buys handbags from one set of users and then resells them to another set of users in the marketplace. The company partners with personal shoppers, professional shoppers, stylists, salespeople, boutiques, fashion bloggers, models, photographers, public relations firms, and others. Founded in 2014, it has already experienced rapid growth in revenues -- a whopping 200% from 2018 to 2019.

GOAT is a marketplace for buying and selling sneakers and streetwear. It is a project developed by the company 1661, Inc. Founded in 2009 by Daishin Sugano and Edward Lu, the company has raised $197M at a valuation of $550M.

Yoogi's Closet is an online fashion resale store for buying & selling women's luxury secondhand goods. It was co-founded in 2008 by Simon Han and his wife Eugenia Han in Seattle, WA. The name "Yoogi's Closet" was chosen because Eugenia's nickname is Yoogi, and many of the store's initial goods came from her collection. The company's main value proposition is its guaranteed authenticity of every designer item, each of which is professionally examined. Yoogi's Closet's annual revenue has increased by 548% between 2009 and 2013 ($1.55M to $10.05M).

Fashionphile is an online fashion resale website where consumers can buy and sell women’s luxury designer used handbags, accessories, and jewelry. Fashionphile has brick-and-mortar locations in Beverly Hills, San Francisco, New York City, and Carlsbad, CA. The company originally sold pre-owned luxury handbags on eBay, and in 2007 launched a website to sell products directly on its own platform.

Funding & Deal Highlights:

Apeel Sciences is tackling the world’s wasted food problem armed with a $250M round of new funding and a $1B valuation. Founded in 2012, the company develops rot-reduction coatings for produce available at top food retailers in the United States and Europe. The coatings are plant-derived and double or triple the shelf life of many fruits and vegetables, without needing refrigeration, the company said in a written statement.

Bluecore, a marketing technology firm that uses data gained from direct marketing like email, social media, and site activity and combines that data with machine learning to make better predictions about who might want to buy what among its customers, announces that it has raised $50M.

Oncology Analytics, a leading data analytics and technology-enabled services company dedicated to helping health plans, providers, and patients with solutions that are purpose-built for oncology, has announced the completion of a Series C funding round of $28M. Baird Capital led the round and joins existing investors Oak HC/FT, McKesson Ventures, and The Blue Venture Fund.

DefinedCrowd raises US $50.5M, the largest ever Series B round raised by a female-founded AI company in the U.S. With this investment, DefinedCrowd plans to expand its existing solutions, launch new innovative subscription-based offerings and expand its global reach. DefinedCrowd also plans to double the number of its employees and open more research and development offices around the world by the end of 2020.

Toronto-based CI Financial Corp. is acquiring a “strategic interest” in Boston-based registered investment advisor (RIA) Congress Wealth Management, LLC. The deal, which is expected to close in the third quarter, is the latest in a string of investments CI has made in the U.S. RIA space. Within the past seven months, CI has acquired majority stakes in Phoenix-based Surevest Wealth Management and California-based One Capital Management, LLC, as well as a strategic interest in Arkansas-based The Cabana Group, LLC.

Tetra Therapeutics announces that it has entered into a definitive merger agreement for Shionogi & Co., Ltd. to acquire Tetra. With this acquisition, Shionogi will obtain global rights to Tetra’s entire portfolio of compounds for the treatment of brain disorders associated with cognitive and memory deficits.

Filtration Group announces the acquisition of Oxyphen, an innovator in track-etched membranes. As part of the Filtration Group family, Oxyphen has strengthened its ability to partner with customers in life science, consumer, and industrial markets with its customized membrane solutions.

Brazilian retailer Via Varejo acquires fintech Airfox for an undisclosed amount.

Mobile computer vision company Scandit rakes in an $80M Series C.

Since last week, PrivCo has added:
835 Profiles | 103 M&A Deals | 128 Fundings
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Jio is working with banks on an IPO

The conglomerate backed by Mukesh Ambani, Asia’s richest man, is preparing Jio Platforms Ltd. for an initial public offering outside of India. The offering could happen in the next 12 to 24 months. [Read more].

Bakery Chain Le Pain Quotidien’s U.S. Arm Files Bankruptcy

The U.S. arm of bakery chain Le Pain Quotidien filed for bankruptcy in Delaware with plans to sell itself for $3M in order to avoid shutting down for good, court papers show. [Read more].

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