The CEO of The RealReal, Julie Wainwright, has said that the company’s last round of financing would be the last private financing for the company. She is now seeking $100M from private investors.
Perhaps the company hasn’t grown to the size that would constitute going ahead with an IPO. Perhaps the company would have a better market share if they invest in more growth first. Who knows? Wainwright has declined to respond to any requests for comments at this time regarding the financing.
The RealReal is a consignment company that focuses on luxury clothing for women, men, as well as jewelry, art, and home decor. For this reason, instead of seeing The RealReal as competition, luxury designers now collaborate with them.
The RealReal has a store in New York and is working to open other locations in the US. Wainwright says she wants people to be able to comparison shop, so the physical stores are needed. Physical stores give customers a more upscale feel and allow them to have their items valued in a non-pawn shop environment. The RealReal’s use of gemologists, watch experts, art curators, or brand authenticators in their valuation offices makes sure they are buying the most upscale items for their customers to choose from.
Approximately 80 percent of The Real Real’s shoppers are women, purchasing watches and leather goods for themselves. For every four buyers, they have one consigner, says Wainwright.
If you are curious about the resale value of your items, you can head over to The RealReal’s Instagram stories to learn more from their pricing expert, You can also see some of their upscale items.
It will be interesting to see what Wainwright does in the future regarding fundraising, since the company is currently pitching private investors, and there has also been a discussion of an IPO. Only time will tell.