Yaga, a leading Estonia-based second-hand fashion marketplace, closed a €4 million pre-Series A funding round, marking a pivotal moment in the company’s ambition to redefine global resale and circular fashion. The round was led by Specialist VC and included participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and notable angel investors. With this latest capital injection, Yaga’s total funding has reached €7.2 million.
Founded in 2017 by Aune Aunapuu and Karl Erik Kotkas in Tallinn, Yaga’s platform allows users to buy and sell a curated selection of second-hand clothing, shoes, and accessories. By focusing on secure escrow-based payments, local logistics partnerships, and a user-friendly marketplace, Yaga aims to bring trust and scale to the rapidly expanding world of pre-loved fashion.
“Our growth in South Africa proves that this is a global movement, not limited to Europe or the US. With this…
funding, we will explore new expansion opportunities as we continue to build the sustainable fashion marketplace of the future,” said Aune Aunapuu, CEO. Growth on Two Continents Yaga has over 1 million registered users and processes more than 100,000 transactions per month.
Most of its user base comes from Estonia and South Africa, where the platform leads the pre-owned market with over 12 million monthly visits. Since its inception, the platform has cataloged over 3 million items and maintained profitability—a rarity in the competitive global recommerce sector.
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for pre-loved fashion – one of the fastest-growing business sectors within the fashion industry,” says Nanna Andersen, managing director of H&M Group’s business area New Growth & Ventures.
Funding and Expansion Plans The €4 million raised will support Yaga’s push into the Middle East and North Africa (MENA) as well as further enhancement of its payments, UX features, and logistics. The investment will also allow Yaga to strengthen its 25-person team and deepen support in existing markets. Yaga’s business model…
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