Dubai-based luxury goods platform The Luxury Closet has announced it has raised £1.8m in funding in its latest funding round as it enters operations in Hong Kong following the purchase of Guitless.com.
In a statement this week, the ecommerce company that sells used fashion items announced that the funding will boost its global expansion ambitions, starting first with Guiltless, another pre-owned luxury brand platform.
The second closing was led by Knuru Capital, which will now become a key shareholder in TLC together with its two existing shareholders, Middle East Venture Partners (MEVP) and Wamda Capital.
The Luxury Closet was founded in 2011 by Kunal Kapoor, who said: “2019 is proving to be a very exciting year for us. The Luxury Closet has built one of the best catalogues in the world, and we are now taking it international.
“With the acquisition of the operations of Guiltless.com, it will provide us with a strong foothold in the rapidly growing Asian market and enable us to offer delivery, and concierge services to our customers in Hong Kong.
“Welcoming a value-add fund like Knuru is excellent news for the company and it will help us continue to disrupt the online luxury space globally.”
This transaction contains a secondary portion as well that allows MEVP’s seed vehicle, MEVF I, to provide its limited partners an initial return on their investment. MEVP still remains as the biggest single shareholder in The Luxury Closet.
Partner at MEVP Walid Mansour said: “The Luxury Closet is disrupting not only the $10bn USD personal luxury consumption in the GCC, but also opening up the ultra-valuable GCC closets to a fast growing global demand for unique pre-loved luxury items.
“Knuru’s investment only serves to underscore our bullishness and confidence in the success of The Luxury Closet.”