(MENAFN - Khaleej Times) The Luxury Closet, an e-commerce platform for pre-owned luxury goods, has completed its growth funding round by securing additional capital that brings the total round to around $11 million.
The second closing was led by Knuru Capital, a newly set-up fund that invests in global digital disruptors, which will now become a key shareholder in the e-commerce platform together with two of the main Middle East and North Africa-focused VC funds and existing shareholders, Middle East Venture Partners (MEVP) and Wamda Capital.
The Luxury Closet also announced its expansion into Hong Kong, with a partnership with Guiltless.com, which was founded by Yen Kuok. The Luxury Closet will be taking over the operations of Guiltless.com.
"2019 is proving to be a very exciting year for us. The Luxury Closet has built one of the best catalogues in the world, and we are now taking it international. With the acquisition of the operations of Guiltless.com, it will provide us with a strong foothold in the rapidly growing Asian market and enable us to offer delivery, and concierge services to our customers in Hong Kong. Welcoming a value-add fund like Knuru is excellent news for the company and it will help us continue to disrupt the online luxury space globally," said CEO and founder of The Luxury Closet, Kunal Kapoor.
"We back companies with the clear potential to become true global players and The Luxury Closet strategy of sourcing regionally and selling globally perfectly matches this ambition," said Bassim Haidar, chairman of Knuru Capital.
With the completion of this fundraising round, The Luxury Closet is now fully equipped to continue revolutionising how Middle Eastern consumers purchase luxury goods in a trustworthy online marketplace. The transaction contains a secondary portion as well that allows MEVP's seed vehicle, MEVF I, to provide its limited partners an initial return on their investment. MEVP still remains as the biggest single shareholder in The Luxury Closet.
Walid Mansour, partner at MEVP, said: "The Luxury Closet is disrupting not only the $10 billion personal luxury consumption in the GCC, but also opening-up the ultra-valuable GCC closets to a fast-growing global demand for unique pre-loved luxury items. Knuru's investment only serves to underscore our bullishness and confidence in the success of The Luxury Closet."