Yaga raises €4M to scale its sustainable fashion marketplace

Tallinn-based Yaga, an online
marketplace for second-hand fashion, has raised €4 million in a pre-Series A
round led by Specialist VC, with participation from H&M Group, Trind
Ventures, Startup Wise Guys, and several angel investors.

Resale platforms have moved beyond
niche and are now mainstream shopping destinations. The global second-hand
apparel market is projected to grow from $227 billion in 2024 to $367 billion
by 2029, placing Yaga at the centre of this expanding sector.

Founded in Estonia in 2017, Yaga
operates the market-leading resale platform in South Africa and is expanding
into new markets, attracting over 12 million monthly visits.

Yaga’s platform offers a secure,
user-friendly experience with escrow-based payments and localised logistics to
protect buyers and sellers. Items are generally priced 50–80 per cent below new
retail, improving accessibility and supporting more sustainable consumption.

The company plans to strengthen its
presence in Africa and the Middle East, creating economic opportunities for
sellers while promoting more sustainable consumption.

Aune Aunapuu, CEO and founder of Yaga, said that second-hand fashion is increasingly becoming the preferred choice for millions of consumers seeking both affordability and sustainability.

Our growth in South Africa proves that this is
a global movement, not limited to Europe or the US. With this funding, we will
explore new expansion opportunities as we continue to build the sustainable
fashion marketplace of the future,

The new funding will support expansion opportunities
in the Middle East and North Africa, team growth, and the development of
existing markets.