Dubai-based online store, TheLuxuryCloset.com, announced that it had closed a USD 7.8 million Series B round of funding. The funding was jointly led by Wamda Capital, a venture capital company focusing on investing in technology-enabled firms in the MENA region, and Middle East Venture Partners (MEVP), a tech-focused Venture Capital enterprise that has previously seeded and reinvested in The Luxury Closet since 2012. Saned Partners, Equitrust, Arzan Venture Capital, and some other regional investors have also joined this round.
TheLuxuryCloset.com is a Dubai-based online boutique for buying and selling authentic new as well as pre-owned luxury designer and fashion goods. With the new capital, along with the guidance and expertise of its investors, the company aims to expedite its growth and regional expansion. TheLuxuryCloset.com plans to create its team and set up operations in Saudi Arabia, make further investments in marketing and technology, accelerate the pace of its digital retail innovation, and improve its user experience and engagement by developing a new application.
Since its inception in 2011, the start-up had acquired more than 300,000 members and about half a million of monthly visitors from around 60 countries worldwide. In the Middle East, there’s a huge appetite for luxury, proven by a per capita spending on luxury goods estimated at approximately USD 1,900 per year and the region is expected to witness robust e-retail growth by 2020, as consumers rapidly opt for faceless transactions.