H&M has become the latest fashion retailer to invest in a resale platform as it becomes the majority shareholder in Sellpy.
Sellpy, a Swedish fashion resale company which launched in 2014, is now understood to be around 70 per cent owned by H&M, which has been gradually ramping up its investment since 2015.
Unlike other resale services like Depop, Sellpy will collect a bag of unwanted clothes from a customer, sort through them then sell the goods on its own platform, giving customers 40 per cent of the proceeds.
Donators can track the items being sold on Sellpy’s app and either have it transferred directly to their bank accounts or choose to donate it to a number of partnering charities. Anything not sold will also be donated to charity.
Since 2015 H&M is understood to have invested more 182 million SEK (£14.80 million) in Sellpy in funding rounds and secondaries, and will provide a further 60 million SEK (£4.88 million) in two instalments over the next few years.
Once this investment is completed H&M will own around 74 per cent of the company.
“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,” head of H&M’s investment arm CO:LAB Nanna Andersen said.
Resale platforms are fast becoming major players in the fashion sector amid growing pressure to move towards more sustainable models, and is predicted to become 1.5 times larger than the fast fashion industry by 2028.
This week alone online luxury fashion giant Farfetch announced a partnership with Thrift+ and the Kardashian family announced the launch of a resale platform for their collective wardrobes.