Yaga, a platform of Estonian origin for buying and selling second-hand fashion goods, has raised €2.2 million from investors to expand into markets in Africa and Asia.
Yaga has grown threefold in the past year and a half and, in addition to South Africa, has opened a platform in Kenya and India, the company said.
With the support of the involved investment of €2.2 million, the company plans to further increase the growth rate.
The lead investor of the investment round was Startup Wise Guys, while Estonian-based Trind Ventures and Specialist VC and Latvian venture capital firm Rubylight also invested in Yaga. Angel investors include Markus Villig from Bolt, Kaarel Kotkas from Veriff, Kristjan Vilosius from Katana and Triin Hertmann and Alvar Lumberg.
“The attitude towards the recycling of fashion goods has undergone a huge change in the world. While only 10 years ago second-hand goods were looked down on in Estonia, thrifting has now become the new normal. People proudly share their finds on social media and selling things second-hand is a significant source of income for many,” Aune Aunapuu, the head and a co-founder of Yaga, said in a statement.
The recycling trend in Arica in its early stages
“The opportunity to earn and save money is also a clear reason why, even when the economy is cooling down, we have set new growth records every month.”
Yaga’s biggest competitor in Africa is Facebook Marketplace.
“While recycling has been on the rise in Europe for a long time and Vinted, which is of Lithuanian origin, has grown into a unicorn with a value of four billion euros, the trend in African countries is still in its early stages and closely following our trend. In South Africa alone, we see an opportunity to grow our business tenfold,” Aunapuu added.
Yaga will direct the investment into the development of the platform, growing the team and reaching new customers in its target markets.
