The secondhand apparel market is officially mainstream, and Yaga, a rising star in Tallinn’s fashion tech ecosystem, just made a major statement. The pre-Series A raise of €4 million, led by Specialist VC and supported by H&M Group Ventures, Trind Ventures, Startup Wise Guys, and a group of angel investors, puts Yaga firmly in the spotlight as one of the largest sustainable fashion funding stories from Estonia this year.
A Marketplace Built for Massive Scale
Founded in 2017 by Aune Aunapuu and Karl Erik Kotkas, Yaga is an online marketplace for buying and selling secondhand clothing, shoes, accessories, and fashion items. The platform now manages a digital catalog of over 3 million items across various categories, ensuring safe and efficient delivery through secure payment systems and trusted logistics partnerships.
“Second-hand fashion is no longer a niche – it’s becoming the first choice for millions of people who want both affordability and sustainability,” said Aune Aunapuu, CEO and Founder of Yaga.
Breakout Funding and Strategic Partnership
The new round brings Yaga’s total capital raised to €7.2 million since inception. “With this funding, we will explore new expansion opportunities as we continue to build the sustainable fashion marketplace of the future,” said Aune Aunapuu. Participants in this round include leading international investors such as Specialist VC, H&M Group Ventures, Trind Ventures, and Startup Wise Guys, emphasizing global retailers’ confidence in Yaga’s model.
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for preloved fashion,” said Nanna Andersen, Managing Director of H&M Group’s New Growth & Ventures.
Africa’s Leading Fashion Resale App
Yaga has become the dominant resale platform in South Africa, regularly doubling in size year-over-year, and has recently expanded into Kenya. With more than 6 million pre-owned items sold on the platform, global sellers have earned over €80 million, extending the life cycle of garments and reducing textile waste.
The company achieved profitability with a compact team, reaching a run rate of over €50 million in gross merchandise value (GMV) by 2024. Expansion into the Middle East and North Africa (MENA) region is now a top priority, supported by its new funding.
Aune Aunapuu commented that second-hand fashion is no longer a niche—it’s becoming the first choice for millions. Their growth in South Africa proves that this is a global movement, not limited to Europe or the US”.
Platform Safety, Community, and Impact
Yaga’s platform is engineered for safety and accessibility, featuring an escrow-based payment system and localized logistics tailored to buyers and sellers in emerging markets. Fashion items sold through Yaga are typically 50–80% cheaper than new garments, increasing accessibility and lowering the environmental impact of fast fashion.
Yaga won the GreenTech Award at the Estonian Startup Awards 2024, cementing its reputation for impact and innovation.
Global Secondhand Apparel Boom
The worldwide secondhand apparel market is projected to climb from $227 billion in 2024 to $367 billion by 2029, and platforms like Yaga are primed to lead this transformation. As resale platforms become go-to destinations for millions of new shoppers, Yaga’s tech, user experience, and localized logistics offer both eco-impact and strong commercial returns.
Yaga operates as a person-to-person marketplace. After quickly establishing the market leader position in their home market, the company expanded its reach by launching in South Africa in 2019. This strategic move enabled Yaga to tap into emerging markets, where demand for affordable and sustainable fashion is increasing.
