H&M Group has acquired majority stake in Sellpy, a re-commerce platform that sells second-hand clothes, to strengthen its efforts to become fully circular and support its global expansion plans.
The fast fashion retailer first invested in the re-commerce business back in 2015 and since then has participated in all investment rounds. With this investment, the retail group has got approximately 70 per cent stake in Sellpy, which makes it a majority shareholder.
Elated over the association, Michael Annör, CEO, Sellpy, said “We are excited to continue to work even closer with H&M Group to empower everyone to live circular, regardless of whether they live in Sweden or elsewhere. With the support of H&M Group, we can continue to innovate and drive awareness and adoption of re-commerce.”
According to a statement released by H&M, it has invested around SEK50 million (£4.08 million) in Sellpy since 2015, and SEK92 million in pre-existing investor commitments to private equity – also known as secondaries.
Moreover, report reveals that the retail giant plans to invest SEK60 million more via two separate installments ‘within few years’. With this, H&M will have approximately 74 per cent stake in Sellpy.
The move is instigated by the fashion retailer’s investment arm, CO:LAB. “We keep investing in Sellpy because we strongly believe in the company and the founders. Sellpy has a unique circular business model, which perfectly aligns with H&M Group’s vision to become fully circular,” said Nanna Andersen, Head, CO:LAB.
Sellpy, established in 2014, could grow its current offering ‘into a complete platform for second-hand fashion’ per the outlet. It is now all geared up for a worldwide expansion starting with Germany.