Yaga Raises €4 Million to Scale Its Sustainable Second-Hand Fashion Marketplace
- ByStartupStory | October 22, 2025
Yaga, an online marketplace focused on second-hand fashion, has secured €4 million in a pre-Series A funding round led by Specialist VC, with participation from notable investors including H&M Group, Trind Ventures, Startup Wise Guys, and several angel backers.
The global second-hand apparel market is rapidly evolving from niche to mainstream, projected to grow from $227 billion in 2024 to $367 billion by 2029. Yaga stands at the forefront of this transformation, leveraging its established presence in South Africa, where it commands the market-leading resale platform, attracting over 12 million monthly visits.
Democratizing Sustainable Fashion
Yaga offers a secure and user-friendly digital marketplace that connects buyers and sellers with escrow-backed payments and localized logistics. The pricing on resale items typically ranges from 50% to 80% lower than retail, making sustainable fashion both affordable and accessible.
The platform’s experience emphasizes trust, convenience, and community, providing economic opportunities for sellers while encouraging sustainable consumption patterns.
Expansion Plans Backed by Funding
With this fresh capital, Yaga aims to expand aggressively within the Middle East and North Africa regions, alongside deepening its footprint across existing African markets. The investment will also support scaling the team and optimizing platform features to handle growing demand.
CEO and founder Aune Aunapuu highlights the rising consumer preference for second-hand apparel, bridging affordability with environmental consciousness:
“Our growth in South Africa proves that this is a global movement, not limited to Europe or the US. With this funding, we will explore new expansion opportunities as we continue to build the sustainable fashion marketplace of the future.”
The Future of Fashion is Circular
As sustainability takes center stage, Yaga illustrates how circular fashion economies can thrive digitally, providing an eco-friendly alternative to fast fashion. With strategic backing from retail giants like H&M and a strong community foundation, Yaga is positioned to revolutionize how consumers shop and sell quality pre-owned apparel, contributing to a greener planet.
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