South African online marketplace raises R80 million from global investors
South African online marketplace raises R80 million from global investors as fashion resale platform Yaga continues to redefine sustainable fashion in Africa and beyond. This new Yaga funding round underscores global investor confidence in the region’s thriving e-commerce and circular economy sectors.
Global investors back Yaga’s vision for sustainable fashion
Leading South African online marketplace, Yaga, has raised €4 million (R80.4 million) in a pre-Series A funding round led by global investors including Specialist VC, H&M Group Ventures, Trind Ventures, Startup Wise Guys, and several angel investors.
The announcement marks a major milestone for the fashion resale platform, which has grown rapidly since its launch and now dominates the local pre-loved fashion space. “This latest funding reflects investor confidence in both the sector and the Yaga team,” the company said in a statement.
According to Yaga, the second-hand apparel market is no longer a niche. In fact, it is becoming a mainstream shopping destination worldwide, driven by younger consumers embracing affordability, sustainability, and digital convenience.
A booming global second-hand market
In 2024, the global second-hand apparel market grew by 15%, reaching $227 billion, and is forecast to nearly double to $367 billion by 2029, according to Yaga.
“At the centre of this global shift is Yaga — a safe and user-friendly pre-loved fashion buying-and-selling platform,” the company explained. “Our escrow-based payment system and localised logistics ensure trust and protection for both buyers and sellers.”
The platform’s model focuses on simplicity and security, using an escrow system in which a third party handles transactions until both sides are satisfied. This approach has made Yaga one of the most trusted names in South Africa’s online fashion resale market.
Yaga’s impact on sustainable fashion
Yaga CEO Aune Aunapuu highlighted that the platform’s mission goes beyond business — it’s about promoting sustainable fashion and reducing textile waste.
“More than six million fashion items have been given a new life through Yaga over the past few years,” said Aunapuu. “We’re helping reduce waste and enabling users to earn from clothing that might otherwise go unused.”
Aunapuu also emphasized that Yaga creates economic opportunities for South Africans and others around the world. Over €80 million (R1.6 billion) has already been earned by sellers on Yaga globally.
Products sold on the platform are typically 50% to 80% cheaper than buying new, making it an accessible and environmentally conscious choice for millions of consumers.
Record growth and global expansion
The South African online marketplace has shown remarkable performance, doubling in size annually with a lean 25-person team. It has achieved a gross merchandise value run rate exceeding €50 million (R1 billion) — all with only €3.2 million (R64 million) in funding before this latest round.
This strong growth reflects both rising demand for circular fashion and the platform’s operational efficiency. The company plans to use the newly raised capital to expand into new markets, enhance its technology, and further strengthen its logistics network.
“Second-hand fashion is no longer a trend,” Aunapuu said. “It’s becoming the first choice for millions of people who want both affordability and sustainability. Our growth in South Africa proves that this is a global movement.”
Investor confidence in African e-commerce
Global investors are increasingly turning their attention to African e-commerce startups, attracted by the continent’s digital growth and youthful consumer base.
Yaga’s funding success aligns with the broader trend of international venture capital firms backing sustainable innovation in Africa. The participation of major investors like H&M Group Ventures also highlights the growing synergy between established fashion retailers and tech-driven resale platforms.
“The rise of platforms like Yaga demonstrates how sustainability and profitability can go hand in hand,” said one investor representative. “We’re seeing a real opportunity to build global impact businesses from Africa.”
What this means for South Africa’s digital economy
South Africa’s fashion resale and online marketplace industries are gaining traction as consumers look for cost-effective and eco-friendly alternatives. Yaga’s model supports small sellers, promotes entrepreneurship, and creates income streams for individuals across the country.
By integrating local logistics, the platform ensures smooth transactions even in areas with limited infrastructure — a key factor in its dominance in South Africa.
Industry analysts believe that Yaga’s growth mirrors the potential of South African e-commerce platforms to scale globally with the right mix of funding, technology, and sustainability focus.
The future of Yaga and sustainable marketplaces
With the latest funding, Yaga plans to enhance user experience, expand its sustainability initiatives, and deepen partnerships across Africa and beyond.
The company’s long-term goal is to build the largest circular fashion marketplace in emerging markets, empowering millions of people to buy, sell, and recycle clothing responsibly.
“Our goal is to make sustainable fashion the standard, not the exception,” Aunapuu concluded. “We believe that by making resale easy, safe, and accessible, we can drive real environmental and social change.”
Conclusion
The South African online marketplace raises R80 million from global investors, reinforcing confidence in Africa’s digital retail and sustainable fashion future. Yaga’s continued growth not only strengthens its position as a leader in second-hand fashion but also represents a wider shift towards conscious consumerism and global digital inclusion.
As global investors continue to back African innovation, platforms like Yaga are proving that the next big wave in tech and sustainability may very well be coming from Africa.
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