Yaga, a fast-growing online resale fashion platform, has secured €4 million (about R80 million) in a pre-Series A global funding round. The investment comes from Specialist VC, H&M Group Ventures, Trind Ventures, Startup Wise Guys, and several angel investors — marking a strong vote of confidence in Yaga’s business model and the booming resale economy.
The global second-hand apparel market expanded by 15% last year to reach $227 billion and is projected to climb to $367 billion by 2029. As resale becomes mainstream, Yaga continues to emerge as a major driver of sustainable and affordable fashion consumption.
Dominant Market Player in South Africa
Yaga has built a solid foothold in South Africa, where it leads the online fashion resale market thanks to its safe, user-friendly platform. Its escrow-based payment system and localized logistics provide strong protection for both buyers and sellers.
“Items on Yaga are typically 50–80% cheaper than new, making fashion more accessible,” said CEO Aune Aunapuu. “More than six million fashion items have been given a second life through Yaga, reducing waste and enabling circular fashion.”
The platform has also unlocked major economic opportunities: sellers have collectively earned more than €80 million worldwide.
Investors See Strong Growth Potential
Yaga has doubled in size annually, reaching a €50 million+ GMV run rate with just 25 employees and €3.2 million raised prior to this round. Such efficiency has captured attention from global investors — including H&M Group Ventures, which sees the company as a strategic fit.
“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 sectors in the industry,” said Nanna Andersen, Managing Director of H&M Group’s New Growth & Ventures. “Their presence on the African continent is also a strong complement to H&M Group’s existing secondhand initiatives worldwide.”
Future Expansion Toward MENA Markets
Aunapuu confirms that Yaga’s ambitions extend beyond its current core markets:
“Second-hand fashion is no longer just a trend — it’s becoming the first choice for millions seeking both affordability and sustainability. This funding will empower us to strengthen existing markets and explore new ones, including the Middle East and North Africa.”
With significant backing and rapid traction, Yaga is poised to play a pivotal role in the global shift toward more sustainable fashion consumption.
