Dubai-based online marketplace The Luxury Closet has raised $14 million to expand its operations worldwide amid a coronavirus-induced surge in online sales and demand for recycled fashion.
The funding round was led by GMP Investments, the company said on Sunday.
Other backers include Dubai’s HB Investments, Saudi Arabia’s Nazer Group, Middle East Venture Partners and MLM Investment Company.
Set up in 2012, The Luxury Closet resells luxury goods in 85 countries on its platform.
“The capital raised will accelerate The Luxury Closet’s already robust global growth with the company set to magnify its presence in markets outside the UAE and execute on a clear strategy ... within the international high-end luxury resale market,” The Luxury Closet said.
Online shopping became more popular after governments around the world introduced movement restrictions to stop the spread of the Covid-19 pandemic.
Retail companies strengthened their digital operations and realigned their businesses after the pandemic began.
E-commerce sales in the Mena region are set to triple from $8.3 billion in 2017 to $28.5 billion next year, according to research by Bain & Company and Google.
“Resale is the future of shopping. We expect one in six transactions to be pre-owned by the end of the decade,” said Kunal Kapoor, chief executive and founder of The Luxury Closet. “This marks a paradigm shift in consumer choice and the value chain of the fashion and retail industry. What we are excited about most is leading the industry to a more sustainable and environmentally friendly future”.
Middle East Venture Partners, which focuses on early-stage Middle East start-ups, has backed The Luxury Closet in each funding round.
“Being eco-friendly is so important to us as a family and an organisation, and The Luxury Closet advocates that by recycling luxury fashion,” said Mona Kattan, president of HB Investments.
“Having a platform that allows us to resell and buy luxurious items at an affordable cost is so meaningful to us because it opens up the accessibility to more people and also reduces the incentive to buy counterfeits.”
Awad Capital, a Dubai Financial Services Authority-regulated company, acted as financial adviser to the marketplace during the funding round.
Drake Star Partners, a global investment bank focused on technology, also supported the online marketplace in the transaction.
Start-ups in the Mena region secured $1.03bn in funding last year, 13 per cent more than in 2019, according to data platform Magnitt.
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Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Springsteen: Deliver Me from Nowhere
Director: Scott Cooper
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
