InstantLuxe, which was founded in 2009 by Yann Le Floc’h and is now the leading marketplace for second-hand luxury goods, announced yesterday that they raised a €2 million equity round with lead investor Iris Capital and Isai. The funds will be used to accelerate InstantLuxe’s growth by strengthening its position amongst luxury e-commerce platforms and expanding into m-commerce in order to streamline and encourage the resales and purchases of luxury items on smartphones.
InstantLuxe’s customer base stands at 500,000, a number which Le Floc’h wants to rapidly grow in France and, for the first time this year, other European markets. In addition to offering quality pre-owned luxury goods from top houses such as Louis Vuitton, Chanel and Hermès, another advantage they have as they expand into new markets is their acclaimed goods authentication processes. The luxury goods market has long been fighting against counterfeiting, which poses a substantial threat to the credibility, viability and financial health of the sector. The potential for fraud is even more of a concern in the second-hand luxury market where there are rarely official authentication processes available to consumers. InstantLuxe fought against this problem by implementing systematic authentication of the goods available on their site by expert partners who are reputable and specialized in their fields. Once the goods have been verified and sold, the purchaser receives a certificate of authenticity, which also helps to give additional reassurance to consumers.
For Le Floc’h, the investment in InstantLuxe is a clear signal of their huge potential and effective business model. He adds:
“The entry of Iris Capital and the support by Isai is a fantastic opportunity for our development. This is a testimony to their confidence in our model, which is based especially on excellence. We are committed daily to facilitating the selling process, reassuring the buyer about the quality and authenticity of the product, to constantly listen to the demands of all users. This constant demand has now made us a leader in the market of exceptional products.”