The Luxury Closet receives investment from Huda Beauty Investment (HBI), championing resale Economy and Sustainability in the Luxury resale Marketplace Industry
HBI invests in the Middle East’s resale market leader The Luxury Closet, becoming one of the principal shareholders.
Founders of Huda Beauty add capabilities into brand development and their social media leverage.
Partnership to focus on developing The Luxury Closet brand equity and expediting growth across markets
The Luxury Closet, the leading luxury resale marketplace in the Middle East, and HB Investments (HBI), the private investment office of the founders of Huda Beauty, have announced a strategic partnership, seeking to harness the combined understanding of consumer behavior in fashion and beauty and to drive brand awareness and increase the adoption of resale.
HB Investments will become one of the principal shareholders of The Luxury Closet with, Mona Kattan, Co-Founder and Global President of Huda Beauty, joining the board alongside existing shareholders Middle East Venture Partners (MEVP), Wamda Capital, Knuru Capital and Precinct Partners.
“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 Luxury Closet is excellent news for our company. The partnership will help us bring the concept to a whole new audience.” said CEO and Founder of The Luxury Closet, Kunal Kapoor.
"I have always been an advocate of circular fashion, and I am very excited about our endeavours with The Luxury Closet. At the beginning of our entrepreneurial journey, we did not have the means to purchase Fashion Luxury items and thus opted for vintage and second-hand shops. I'm very pleased to be part of the board alongside likeminded individuals, and a business that offers a unique service that fills a major gap in the market." said Mona Kattan
Huda Kattan, Chairperson of HB Investments and Founder of Huda Beauty, said, “We are excited to partner with The Luxury Closet. Sustainability is one of our primary focuses and a core tenant for the HBI portfolio. In our continued effort to champion responsible and eco-friendly businesses, we couldn’t be more enthusiastic about our partnership with The Luxury Closet.”
Walid Mansour, Partner & Chief Investment Officer, MEVP added “The resolve and resilience shown by Kunal and the TLC team is the driving force behind MEVP’s continued commitment to making TLC the most trusted and loved online fashion marketplace in MENA. We are growing faster than ever and have established footprints from Hong Kong to California. With this fundraiser, we will achieve significant supply goals such as garnering over 100k SKUs which will make The Luxury Closet MENA’s largest luxury mall.”
TLC has raised $18m till date across 3 funding rounds
TLC focuses on resale of perfect condition items from high end brands like LV, Hermes, Rolex from sellers across Middle East, which globally has the highest per capita spend on luxury. In the last 12 months TLC has listed 80,000 items from 5,000 sellers worth $120m
Founded in 2012, it has expanded rapidly and delivered robust growth. TLC direct-to-consumer sales in MENA represent 60% of revenues and overwhelmingly extends to 40% from Asia to The USA.
Resale has proved to be a Resilient Business Model with TLC posting steady 80% growth year-on-year for H1 2020.
Awad Capital Ltd., a DIFC-based and DFSA-regulated firm, is advising The Luxury Closet on its on-going capital raising.
TheLuxuryCloset is the region’s largest and fastest growing online market place where users buy, sell and consign pre-owned luxury bags and accessories at a heavily discounted price. Based in Dubai, The Luxury Closet provides customers with thousands of pre-owned high-end luxury items and offers up to 70% discounts, authentication and instant item return guarantees.