Archive got a fresh round of funding to the tune of $30 million (“Series B”) and said it will use the money “to further develop its resale intelligence software, accelerate its global expansion and invest in new product innovation and services to drive profitability for brands across a growing array of retail categories, including apparel, footwear, accessories, home goods, furniture, toys, electronics and outdoor gear.”
Analysts estimate the global resale market will reach a whopping $350 billion over the next three years.
The company has been on a growth trajectory for some time. Over the past year, Archive has launched partnerships with New Balance, Fjällräven and Dr. Martens, among others. The company has also expanded existing resale programs with The North Face, DVF, Faherty and M.M.LaFleur, among others.
This latest round of funding brings total funding to date to $54 million. This round was led by Energize Capital. Other participants included returning investors Lightspeed Venture Partners, Bain Capital Ventures, G9 Ventures and Capital F. Jumping on as new investors were Woodline Partners LP and Frontline Growth.
Archive also said Eileen Waris, principal at Energize Capital, will join the company’s board of directors.
Emily Gittins, cofounder and chief executive officer of Archive, said in a statement that resale “has proven wildly popular with consumers and a significant and profitable growth opportunity for brands, allowing them to drive sales, customer loyalty and sustainability at the same time. We’re extremely pleased to partner with this prestigious group of investors as we help brands launch and scale resale channels that strengthen their business.”
The CEO said this new investment will allow the company to continue to lead through innovation “and to add top engineering talent and resale industry experts to our team to support our growing global footprint.”
Gittins and cofounder Ryan Rowe told WWD that they “see a huge opportunity for branded resale to fundamentally change how brands operate and how consumers shop. The resale market is expected to double by 2028, growing at a rate that is six times faster than retail overall. As resale takes an increasing share of wallet, more brands will rely on it as a significant and profitable growth channel for their business.”
In 2024, the resale market brought in $230 billion in sales with 40 percent of Gen Z’s closet share being secondhand. Archive said this consumer demographic is expected to continue to drive growth in the fashion apparel resale space.
Archive said it has proven resale is a scalable business channel “that has unlocked new, profitable revenue for brands. The company’s brand partners are setting aggressive revenue targets for the model in the coming years, with executives estimating that resale will account for 10 percent or more of revenue.”
The company said its resale intelligence software “enables brands to sell secondhand items at higher margins than full price, and allows brands to reclaim supply through multiple channels, including returns, past seasons’ inventory, consumer listings and in-store trade-in.” Archive said resale offerings “also attract new and younger customers looking to purchase items at a lower price point and extend the life cycle of products.”
Archive said it works closely with brands to create resale programs “uniquely tailored to their business needs and supports a comprehensive suite of circular models, including peer-to-peer, trade-in, returns management and more.” Archive has also integrated its platform with global logistics companies, “which leverage Archive’s unique warehouse management software to enable the best economics for brands,” the company said.
“We have been closely tracking trends in resale markets and the circular economy for years. Over the past decade, the retail industry has undergone massive, enduring changes driven by generational shifts in consumer preferences towards more sustainable options,” said Eileen Waris, principal at Energize Capital and a member of Archive’s board of directors. “Archive’s software capitalizes on this shift and enables brands to own a bigger slice of the resale pie, all while supporting profitability and sustainability goals. We are thrilled to partner with the Archive team and support them through this next phase of growth.”
