Treet Secures $2.8M Seed Funding to Connect Brands with Resale Market

Treet Secures $2.8 Million Seed Funding to Revolutionize Resale

Treet, a company focused on innovating the resale retail landscape, has announced the successful completion of a $2.8 million seed funding round. This financing was provided by a consortium of investors including Bling Capital, Matchstick Ventures, Techstars, BAM Ventures, BBG Ventures, Green Meadow, Interlace Ventures, V1.VC, and Alante Capital.

Addressing Friction in the Resale Market

While reselling used clothing represents both an environmentally sound and economically advantageous method of disposal, the process often presents significant hurdles for both those selling and those seeking to purchase pre-owned items.

Treet aims to streamline the resale experience and reduce these obstacles by collaborating directly with brands.

A Brand-Centric Approach to Resale

Essentially, Treet facilitates the establishment of dedicated resale platforms for brands. This allows buyers and sellers to connect and trade items within a branded environment.

By partnering directly with brands, Treet ensures sellers can easily list products using existing SKUs, and provides buyers with the assurance of authenticity.

Benefits for Brands

This model offers brands the opportunity to control their own secondhand market and potentially attract a new customer base.

The company reports that approximately 30% of buyers on Treet are new to the brand, having not previously made a direct purchase.

Mutual Advantages

Brand involvement also significantly benefits Treet itself.

Brands possess valuable insights into product ownership and can proactively encourage resale through targeted communications and marketing efforts.

Furthermore, they can leverage their existing customer base to drive traffic to the resale platform.

Revenue Model and Options

Treet provides sellers with two options for receiving their funds.

Choosing a cash payout involves a 10% fee to the brand and a 10% fee to Treet.

Opting for brand credit results in only a 10% fee being levied by Treet.

Current Brand Partnerships

The startup currently works with brands such as Boyish, Coclico, Altar and époque évolution.

Goodfair and Birdy Grey are slated to launch on the platform shortly.

Overcoming Brand Hesitancy

“A major challenge lies in overcoming brands’ initial reluctance to embrace resale,” explains co-founder and CEO Jake Disraeli.

“The idea of promoting used items with reduced margins can be daunting for a brand.

We are demonstrating that resale can expand their potential customer reach and allow them to engage with customers already reselling on third-party platforms.”

A Thriving Resale Market

The clothing and fashion technology sector has experienced considerable activity recently.

The RealReal went public in 2019, Poshmark in the previous year, and ThreadUp completed an IPO earlier this year.

Additionally, Lyst, a U.K.-based company, recently secured $85 million in funding.

Treet’s funding round aligns with this broader trend within the resale market.