Tallinn-based Yaga, a fast-growing online marketplace for secondhand fashion, has raised €4 million in a pre-Series A funding round to explore opportunities in the Middle East and North Africa – bringing total funding to €7.2 million.
The round was led by Specialist VC, with participation from H&M Group, Trind Ventures, StartupWiseguys, and a group of angel investors.
“Secondhand fashion is no longer a niche – it’s becoming the first choice for millions of people who want both affordability and sustainability,” said Aune Aunapuu, CEO and Founder of Yaga.
The pre-Series A round for Yaga takes place amid a small but notable upswing in investment across Europe’s second-hand and circular fashion sectors.
In France, Faume secured €8 million in April 2025 to expand its brand-partner resale platform and introduce AI-driven dynamic pricing tools. Meanwhile, Austria-based Minimist raised €350k in January 2025 to develop machine-learning software that helps second-hand sellers digitise and manage their inventories more efficiently.
Since no other Estonian resale startups have been reported this year, Yaga’s new funding highlights its regional leadership and reflects a wider European pattern: investor attention is spreading from luxury-focused recommerce platforms to tools and marketplaces supporting mainstream second-hand adoption.
EU-Startups previously featured Yaga in its November 2022 article, which detailed the company’s €2.2 million raise to expand its social e-commerce model into emerging markets, highlighting its strong traction in South Africa and its focus on sustainable resale growth.
“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,” added Aunapuu.
Founded in 2017, Yaga is a social e-commerce company that makes it easy for people to buy and sell second-hand fashion. Founded in Estonia, Yaga has grown the market-leading resale platform in South Africa and is expanding across new markets, with over 12 million visits each month.
According to the company, resale platforms are no longer niche – they’re becoming mainstream shopping destinations. The global second-hand apparel market grew by about 15% in 2024, reaching $227 billion, and is forecast to reach $367 billion by 2029.
Over recent years, Yaga has doubled in size annually, reaching a €50 million+ GMV run rate. The company is now profitable and has achieved this scale with a 25-person team and €3.2 million raised prior to this round, showing the efficiency of its model alongside strong market demand.
Yaga has built a particularly strong presence in South Africa, where it has become the leading online fashion resale platform. Globally, sellers have earned more than €80 million to date, and more than 6 million items have found new owners, extending their life and reducing textile waste.
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for preloved fashion – one of the fastest-growing business sectors within the fashion industry,” said Nanna Andersen, Managing Director of H&M Group’s business area New Growth & Ventures. “Their presence on the African continent is also a strong complement to H&M Group’s existing secondhand initiatives in other parts of the world.”
Yaga’s platform is designed to be safe and user-friendly, offering an escrow-based payment system and localised logistics to protect buyers and sellers. Items are typically 50-80% cheaper than new, making fashion more accessible while helping reduce the industry’s environmental footprint.
With the new funding, Yaga is exploring expansion opportunities primarily in the Middle East and North Africa region. The funding will also support further team growth and the development of existing markets.
Read the orginal article: https://www.eu-startups.com/2025/10/secondhand-fashion-is-no-longer-a-niche-yaga-raises-e4-million-for-its-online-marketplace-and-to-expand-globally/
