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.
Vision and Platform: Revolutionizing Thrift Through Tech
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 revolves around transaction fees and commissions, ensuring continued focus on circular, affordable, and sustainable consumption.
Aunapuu reflected on the journey, expressing deep gratitude to everyone who recognizes the long-term value in what they’re building. She shared that she once thought a marketplace was just a website, but it turned out to be much more—filled with tough decisions, ruthless prioritization, and the challenge of building an organization. The company has come a long way, now boasting a 25-person team and the support of an incredible community.
Why Yaga Stands Out
Yaga’s digital platform ensures buyers and sellers are protected with escrow payments and local logistics, making second-hand shopping as seamless and secure as new retail. Items are typically priced at 50–80% below new retail price, supporting both affordability and responsible consumption.
Industry analysts and investors alike point to Yaga’s rapid scaling in South Africa as proof that second-hand fashion is no longer a trend, it’s becoming the first choice for millions of people who want both affordability and sustainability.
The Global Thrift Movement
The secondhand fashion market is booming worldwide, moving from “niche” to mainstream as consumers seek cost savings and climate-positive alternatives to fast fashion. Yaga’s success in emerging markets confirms a powerful cultural and business shift.
Yaga manages a digital catalog of over 3 million items across multiple categories, tracking user accounts, listings, and transactions to efficiently manage inventory and sales. The fresh capital will see Yaga push into the Middle East and North Africa, enhance its platform, and grow its international team.
The Road Ahead
With strong backing from Specialist VC, H&M Group Ventures, and industry leaders, Yaga is poised to make sustainable, circular fashion accessible to millions more consumers across continents. The company is committed to executing at scale, making the secondhand economy both profitable and impactful for the planet.
“Our growth in South Africa proves that this is a global movement, not limited to Europe or the US,” said CEO Aune Aunapuu. “With this funding, we will explore new expansion opportunities as we continue to build the sustainable fashion marketplace of the future”.
