Japan’s luxury brand consignment app Reclo raises $34M to boost China expansion

Image credit: Active Sonar

See the original story in Japanese.

Tokyo-based Active Sonar, the startup behind luxury brand consignment app Reclo, announced on Thursday that it has raised 3.6 billion yen (about $33.8 million US) from CITIC Capital, SBI Investment, and SBI Securities with loans from Mizuho Bank. Using the funds, the company will strengthen its China expansion. CITIC Capital is the asset management arm of Chinese largest financial conglomerate CITIC Group. Other details, such as the investment ratio of each investor and market cap, payment dates, were not diclosed.

When you have a luxury brand item which is no longer needed, the Reclo platform allows you to ask experts for the appropriate value and price to sell it online. The platform will handle all other time-consuming processes such as selling the item, receiving payments from and shipping to the buyer so that all you have to do is just send the item to the platform.

Reclo’s Chinese version on Taobao

If you are not satisfied with the expert’s assessment, the platform would send you back your item for free. Unlike typical auction platforms or flea market apps, Reclo is not a C2C (consumer-to-consumer) marketplace and can prevent users from buying knock-off items which is often seen in the luxury second-hand market.

The company started the platform’s Chinese version last year, which greatly contributed to the growth of the transactions and doubling the company’s overall sales compared to last year. In addition, over half of the total transactions comes from outside Japan, with China accounting for 70%. With the further business expansion in China, the company set up a local subsidiary in Shanghai last year, planning to curating luxury items in addition to the consignment sales business.

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Translated by Masaru Ikeda