Tradesy, a Santa Monica, Calif-based company that operates an online consignment shop, has landed a $30 million investment led by Kleiner Perkins, CEO Tracy DiNunzio confirmed to Recode recently. The investment, which comes just eight months after Kleiner led a $13 million round in the startup, values Tradesy around $100 million, give or take $20 million in either direction. Several other previous investors, including the billionaire Richard Branson and Rincon Venture Partners, also participated.
Tradesy runs a website and app where people can buy and sell used clothing, ranging from luxury apparel like discounted $2700 Louis Vuitton purses to a casual $50 pair of Toms shoes. The company keeps costs down by holding little to no inventory, in much the same way eBay does. It provides sellers with packaging and shipping labels so they can send goods directly to buyers.
The Kleiner-led investment underscores continued interest among investors in Tradesy and its peers who are attempting to build a version of eBay focused exclusively on clothing and accessories. Some, like ThredUp, which has raised $53 million, hold their own inventory so they can speed up delivery times and control more of the consumer experience. The company recently added an east coast warehouse to help with those goals.
What these investors didn’t realize was that Tradesy had grown rapidly in the months between the failed fundraising attempt and the first Kleiner investment. A large chunk of that growth was built on the back of network effects that had started to take hold, thanks to Tradesy’s tactics for boosting traffic from Google. Tradesy built a technology that automatically organizes and supplements the unstructured product descriptions that sellers include on their listings with the terms and keywords used on similar products that have already sold on the site, DiNunzio said.