UAE-based The Luxury Closet (TLC) has completed its growth funding round by securing additional capital to bring its total investment to $11 million.
This second closing was led by Knuru Capital, which will now become a key shareholder in TLC together with its two existing shareholders, Middle East Venture Partners (MEVP) and Wamda Capital.
The e-commerce platform which sells pre-owned goods was founded in 2011 by Kunal Kapoor and the latest investment will be used to fund the company’s global expansion efforts, starting with Hong Kong, after its acquisition of Guiltless.com.
“2019 is proving to be a very exciting year for us. The Luxury Closet has built one of the best catalogues in the world, and we are now taking it international,” said Kapoor. “With the acquisition of the operations of Guiltless.com, it will provide us with a strong foothold in the rapidly growing Asian market and enable us to offer delivery, and concierge services to our customers in Hong Kong.”
This transaction contains a secondary portion as well that allows MEVP’s seed vehicle, MEVF I, to provide its limited partners an initial return on their investment. MEVP still remains as the biggest single shareholder in The Luxury Closet.
Commenting on the transaction, Walid Mansour, partner at MEVP said “The Luxury Closet is disrupting not only the ~10bn USD personal luxury consumption in the GCC but also opening-up the ultra-valuable GCC closets to a fast growing global demand for unique pre-loved luxury items. Knuru’s investment only serves to underscore our bullishness and confidence in the success of The Luxury Closet”.