Yaga, the social e-commerce platform behind South Africa’s leading online resale marketplace, has closed a €4 million pre-Series A round to deepen its footprint in existing markets and explore expansion across the Middle East and North Africa. The raise—bringing total funding to €7.2 million—was led by Specialist VC with participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and several angel backers.
Founded in Estonia in 2017, Yaga has spent the past few years proving that second-hand is no longer a niche. The company operates a buyer- and seller-friendly marketplace with escrow-based payments and localised logistics, removing typical friction points around trust and delivery. That formula has resonated most strongly in South Africa, where Yaga says it dominates the online fashion resale market. Items listed on the platform typically sell for 50–80% less than new, making fashion more accessible while extending the life of garments and reducing textile waste.
The momentum is measurable. Yaga reports over €50 million GMV run-rate, more than 6 million items rehomed, and €80 million earned by sellers globally—all achieved with a 25-person team and just €3.2 million in prior funding. Over recent years the company has doubled in size annually, and it now attracts 12+ million monthly visits, underscoring strong product-market fit and capital efficiency.
Chief executive Aune Aunapuu frames the raise as validation of a broader shift in consumer behaviour. With inflation reshaping household budgets and sustainability moving from slogan to selection criterion, second-hand platforms are becoming mainstream shopping destinations. The market data backs this up: global second-hand apparel grew about 15% in 2024 to $227 billion and is projected to reach $367 billion by 2029. Yaga’s South African traction, Aunapuu argues, shows the movement is global, not confined to Europe or the United States.
Investor interest mirrors that trend. In addition to Specialist VC leading the round, H&M Group Ventures joined as a strategic backer. The fashion giant’s venture arm has been building a portfolio around circularity; Yaga’s scale in Africa complements H&M’s second-hand initiatives elsewhere, signalling a tighter convergence between incumbent retailers and digital recommerce platforms.
The new capital will support three priorities. First, market expansion, with a focus on MENA, where smartphone penetration, cross-border logistics corridors, and youthful demographics create favourable conditions for social commerce. Second, team growth across product, operations, and trust & safety to maintain service reliability as volumes climb. Third, enhancements to the core marketplace, from payments and delivery integrations to better seller tools that streamline listings and improve discovery.
Yaga’s model leans heavily on trust and localisation. By holding funds in escrow until buyers confirm receipt, the platform protects both sides of the transaction. Local courier partnerships shorten delivery windows and reduce failure rates. Together, these ingredients help transform casual closets into active micro-shops—turning the “clean-out” impulse into extra income for households and a ready supply of quality inventory for value-seeking shoppers.
For South Africa—where Yaga first broke out—the funding signals continued investment in the country’s resale infrastructure, where price sensitivity and style consciousness intersect. For Yaga’s next chapter, the MENA exploration will test how well its playbook travels: community-led discovery, secure payments, and logistics tuned to local realities.
In a category increasingly defined by scale and trust, Yaga’s combination of capital efficiency, regional leadership, and mainstream consumer adoption positions it as one of the more durable players in circular fashion. With fresh funding and a clear expansion thesis, the company is betting that the first choice for millions of shoppers will increasingly be pre-loved—priced right, delivered safely, and easy to sell back when the wardrobe turns over.
