Our portfolio company Yaga, a fast-growing online marketplace for second-hand fashion, has raised €4m in a pre-Series A funding round. The round was led by Specialist VC, with participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and a group of angel investors.
Second-hand fashion is rapidly moving from niche to mainstream. In 2024, the global second-hand apparel market grew by approximately 15%, reaching an estimated $227 billion, and is projected to grow to $367 billion by 2029. Changing consumer attitudes, rising awareness of sustainability, and increasing cost-consciousness are driving this shift — and Yaga is well positioned to benefit from it.
Founded in Estonia, Yaga has built a marketplace that makes buying and selling pre-owned fashion simple, safe, and accessible. The platform combines escrow-based payments with localised logistics to protect both buyers and sellers, while offering fashion items at 50–80% lower prices than buying new.
Over the past few years, Yaga has demonstrated strong and disciplined growth. The company has roughly doubled in size year over year, reaching a €50m+ GMV run rate, and is now profitable. Importantly, Yaga has achieved this with a lean team of around 25 people, having raised €3.2m prior to this round — highlighting the team’s capital efficiency and focus on execution.
To date, sellers on Yaga have earned more than €80m, and over 6 million items have been resold through the platform, extending the lifecycle of clothing and helping reduce textile waste. Yaga has also built a particularly strong position in South Africa, where it has become the leading online marketplace for second-hand fashion.
“Second-hand fashion is no longer a niche — it’s becoming the default choice for a growing number of consumers,” said Aune Aunapuu, CEO and Co-founder of Yaga. “This funding allows us to continue building a marketplace that makes buying and selling pre-owned fashion simple, safe, and accessible, while expanding into new markets where demand for sustainable alternatives is growing rapidly.”
With the new funding, Yaga plans to explore expansion opportunities primarily in the Middle East and North Africa (MENA) region, while continuing to strengthen its position in existing markets. The investment will also support further product development and selective team growth.
From an investor perspective, Yaga stands out for its strong execution, profitability, and ability to scale with discipline in a structurally growing category.
“Yaga has built an exceptionally capital-efficient marketplace in a category that is structurally growing,” said Reima Linnanvirta, Partner at Trind Ventures. “The team has shown strong execution, profitability, and the ability to scale with discipline. We’re excited to continue supporting Yaga as they expand into new markets and bring sustainable fashion to an even broader audience.”
