Dubai-based luxury resale portal, The Luxury Closet (TLC) has raised its investments from HB Investments (HBI), the private investment company owned by blogger Huda Kattan and family.
Even though the size of the amount invested was not revealed, the HBI has stated that it is part of the ongoing $11 million capital raising round in which the Dubai Middle East Venture Partners (MEVP) is also a co-investor.
The Global President of Huda Beauty, Mona Kattan will be joining the board of TLC along with the existing shareholders Precinct Partners, MEVP, Knuru Capital and Wamda Capital.
The investment is a significant milestone for The Luxury Closet as Huda Beauty’s immense reach on social media can be utilized for brand development.
The US based Huda Beauty is one of the most followed brands with nearly 50 million followers on Instagram.
The demand for second-hand designer products has risen even further in the last few months. Many shoppers are viewing it as an affordable and more sustainable way to pick up some of their favorite labels.
“Given the economic situation, people are increasingly valuing circular businesses as they are an affordable and sustainable way to refresh their wardrobes. This has expedited The Luxury Closet’s growth across market cycles. HBI’s investment in The partnership with Luxury Closet is will help us bring the concept to a whole new audience.”
The Luxury Closet
The Luxury Closet, founded in 2012, is an ecommerce portal for pre-owned luxury products including bags, watches, clothes, shoes and other accessories. The aim of this marketplace is to resale high-end brands like Louis Vitton, Rolex and Hermes which are in perfect condition.
According to reports, The Luxury Closet has already raised $18 million to date. Earlier it had accumulated a fund of $2.2 million in a Series A round held in 2015. In May, it closed an $11 million growth round.
The Luxury Closet has expanded rapidly in the region with the Middle East contributing to 60 percent of its direct-to-consumer sale. The rest 40 percent of its sales is contributed by Asia and the United States.
Huda Beauty, the cosmetics line, is one of the fastest growing beauty brands in the world and was launched in 2013 by its Iraqi-American CEO, Huda Kattan.