GoTrendier announces its merger with Chicfy. This is the largest merger of fashion buying and selling startups in the Hispanic market. Driven by the same mission, to be an alternative to fast fashion and create the largest fashion marketplace used in the markets in which they operate. The group will focus on accelerating its growth and opening new countries.
This merger is a great step that will allow both companies to strengthen and boost their growth. With the union, synergies are facilitated in strategic areas such as technology, finance and marketing. Which will allow the development of functionalities to generate a better user experience and continue to scale in current markets. The objective is to create a large marketplace for buying and selling used clothing in the Hispanic market with the opening of new business subsidiaries in Latin America.
There is great potential in the second-hand market. Since both companies add up to more than 8 million users, with a product catalog that exceeds 12 million active products. In this last year, the combined activity has generated one million transactions with a transaction volume of € 25 million. This consolidated the business model in Europe and Latin America. Both business models are transactional, C2C (consumer to consumer), logistically integrated with the best services and guaranteeing a quality product thanks to content curation.
The benefits of this merger
The great beneficiaries of this merger will be the users. As the teams are strengthened with top level professionals. With the main objective of improving the quality of service and experience. However, the operations will continue independently in each country. Belén Cabido, CEO of GoTrendier commented this.
The success of a company is based on a thorough analysis of the business and on how to correctly interpret growth drivers. For this reason, this union allows them to obtain a strategy team to take both companies to scale more quickly. Jesús Monleón, CEO of Chicfy explained it.
Christine Kenna partner of IGNIA commented about this merger. Both GoTrendier and Chicfy have managed to be highly successful in the markets in which they operate. So this merger represents a great opportunity for growth, lowering costs, improving technologies. And always with the focus of offering a quality experience for users.
Luis Martín Cabiedes, partner at Cabiedes & Partners, stated, “The purchase and sale of used clothing among individuals is a model of success worldwide. And the used clothing market is expected to move 400 billion USD in 2022. With the union of the two companies, the company become the largest player in Hispanic countries.”
Founded in Spain in 2013. Chicfy is the leading social marketplace in Spain for the purchase and fashion sale used for men, women and children. The main differentiating factor of Chicfy is the creation of a community based on second-hand fashion. The company has shareholders such as Luis Martín Cabiedes, business angels of seedrocket and for a few months, with GoTrendier. The consolidated team reaches 45 people who make this company a very efficient company in capital and that hopes to reach Break even by the end of the year.
Founded in Mexico in 2016. GoTrendier has the largest second-hand fashion community in Latin America. The startup has a team led by serial entrepreneurs with a lot of experience in internet companies like Trovit, Offerum etc. The team consists of 20 people operating in Mexico, Colombia and Spain. Partners with extensive experience in the classified market such as Bonsai Venture Capital, Antai Venture Builder, Pedralbes Partners bet from the beginning. Later joining in a second round IGNIA, Banco Sabadell and Ataria Ventures. GoTrendier has raised more than € 5 million. This last round aims to open new countries in Latin America and the merger with Chicfy to be leaders in the Hispanic market.
Also published on Medium.