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While neighbouring Lithuania has already made a big splash in the preloved fashion scene with Vinted, most Estonian unicorns have so far emerged from the mobility, deep tech, and fintech niches. That may change soon, as Tallinn-based Yaga, a fast-growing online marketplace for secondhand fashion, has raised €4M in a pre-Series A funding. The company aims to explore opportunities in the Middle East and North Africa.
The round was led by Specialist VC, with participation from H&M Group, Trind Ventures, Startup Wise Guys, and a group of angel investors.
“Secondhand fashion is no longer a niche – it’s becoming the first choice for millions of people who want both affordability and sustainability,” said Aune Aunapuu, CEO and Founder of Yaga.
Founded in 2017, Yaga is a social e-commerce company that makes it easy for people to buy and sell secondhand fashion. Marketing itself as a “marketplace for preloved fashion”, the company has grown into the leading resale platform in South Africa and is expanding across new markets, with over 12M visits each month.
“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,” added Aunapuu.
Over recent years, Yaga has doubled in size annually, reaching a €50M+ GMV run rate (total volume of goods sold). The company is now profitable and has achieved this scale with a 25-person team and €3.2M raised before this round. Globally, sellers have earned more than €80M to date, and more than 6M items have found new owners.
Yaga’s platform is designed to be safe and user-friendly, offering an escrow-based payment system and localised logistics to protect buyers and sellers. Per the company’s estimations, items are typically 50-80% cheaper than new, making fashion more accessible and helping reduce the industry’s environmental footprint.
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for preloved fashion – one of the fastest-growing business sectors within the fashion industry,” said Nanna Andersen, Managing Director of H&M Group’s business area New Growth & Ventures. “Their presence on the African continent is also a strong complement to H&M Group’s existing secondhand initiatives in other parts of the world.”
