The RealReal, a San Francisco-based seller of luxury consignment, has raised $40 million in new venture funding led by Industry Ventures with participation from Greycroft Growth, DBL Partners, e.Ventures, and existing investors. The fast-growing company has raised a total of $83 million in venture backing.
Four years in, The RealReal continues to double its sales each year. In 2014, it sold $100 million worth of goods to its 3.5 million members. This year, it plans to generate $200 million in sales. Unlike most online marketplaces, The RealReal buys its inventory from sellers in order to authenticate it and provide a consistent white glove-style service. For its services, The RealReal takes a 40% cut. (Once a seller hits $7,500 in sales, the cut drops to 30%.)
The RealReal sits in a curious position in the luxury market. From one perspective, it is selling luxury to a new audience: people who might…
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