H&M increases investment in second-hand platform Sellpy
H&M continues to invest in Sellpy, an online platform for second-hand fashion. The Swedish fashion retail group started investing in Sellpy four years ago and has since then joined all investment rounds. Now, H&M has become a majority owner, with an approximate 70 percent stake in the re-commerce platform.
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Through its investment subsidiary CO:LAB, H&M Group has been investing a total of about 4.6 million euros in Sellpy since 2015. Now, with the latest investment of 3.7 million euros and purchase of secondaries for almost 8.5 million euros, H&M continues to invest in the re-commerce platform.
From minority shareholder to majority owner
The Swedish fashion giant will also invest an extra 5.5 million euros in two different installments within a few years, the company announced. When the full investment is handled, H&M will own approximately 74 percent of the company’s stakes.
“We keep investing in Sellpy because we strongly believe in the company and the founders. Sellpy has a unique circular business model, which perfectly aligns with H&M Group’s vision to become fully circular”, says Nanna Andersen, Head of CO:LAB.
Contributing to closed loop for fashion
For H&M, second-hand is an interesting business sector. It says it’s a business opportunity it wants to be part of exploring. “Because it helps customers give their old clothes a new life through reuse, thus contributing to a closed loop for fashion.”
Sellpy was founded in Sweden in 2014 and is a recommerce platform, which means it lets users buy and sell second hand goods. The company is currently preparing for an international expansion, starting with Germany.