Queenly Secures Seed Funding to Expand Resale Marketplace

A promising company emerging from the latest Y Combinator cohort has successfully completed a seed funding round. Queenly announced this morning that it has secured $2.262 million in new investment, building upon a previous $800,000 pre-seed raise.

Resale Platform for Formal Wear

Queenly operates a marketplace facilitating the resale of dresses by individuals and smaller retailers after initial use. This allows a broader range of women to access desired formal wear – for events like proms, quinceañeras, or pageants – at more affordable prices.

Furthermore, the service has the potential to contribute to a reduction in clothing waste, offering a positive environmental benefit.

Investor Confidence and Strategic Partnerships

According to co-founder Trisha Bantigue, Dragon Capital provided the largest single investment in Queenly’s seed round. They quickly recognized the startup’s potential, committing funds the day after their initial meeting.

Interestingly, this seed round did not rely on a single lead investor. Instead, Bantigue describes the group as a collection of investors offering diverse strategic advantages to Queenly.

Diverse Investor Base

Brightlane Ventures contributed capital and will assist with candidate sourcing. Amino Capital’s expertise in analytics will support Queenly’s technical co-founder, Kathy Zhou.

NextView Ventures also participated, bringing valuable experience in resale marketplaces and e-commerce. Additional investment came from Interlace Ventures and SHAKTI.

Team Expansion Plans

Queenly, previously a team of just two, plans to grow its workforce to six full-time employees with the new funding.

This expansion includes adding two engineers to support Kathy Zhou, as well as hiring a head of growth and a head of operations to assist Trisha Bantigue.

Funding Exceeds Initial Goals

Queenly initially aimed to raise $1.5 million but ultimately secured $2.1 million, which increased to $2.262 million by the time of reporting.

Bantigue notably declined a larger $1.5 million offer after already securing approximately $1.1 million of the round.

Prioritizing Sustainable Growth

This decision was influenced by advice from Y Combinator and its managing director, Michael Seibel, who cautioned against raising excessive capital too soon.

The team is prioritizing long-term, “sustainable” growth over rapid “hypergrowth,” citing examples of startups that experienced burnout after quickly raising substantial funds.

Funding Structure and Supply Sources

The new capital was raised through a Simple Agreement for Future Equity (SAFE) with a single valuation cap.

Queenly’s business model leverages both individual sellers and partner stores as supply sources. Bantigue indicates that the partner selling model, while newer, has proven to be a simpler and more efficient source of inventory.

Quality Control and Fraud Prevention

TechCrunch inquired about Queenly’s approach to quality assurance, fraud prevention, and handling returns, particularly in comparison to challenges faced by platforms like StockX.

Bantigue explained that the company employs a two-tiered vetting process for dresses.

Items priced at $300 or less are shipped directly from sellers to buyers, with sellers providing photographic proof of condition. Dresses exceeding $300 are routed through Queenly’s own facilities for more rigorous quality control.

Future Outlook

Equipped with increased capital, a growing team, and a largely untapped market, Queenly is well-positioned for expansion.

The company’s future progress with this new investment will be closely watched.