The Volte, an Australian designer fashion rental marketplace, has successfully raised $4 million in an oversubscribed Series A round. This innovative platform, facilitating dress-sharing among more than 70,000 users, attracted lead investment from eBay Ventures, eBay’s venture capital arm. This funding round marks an important step in The Volte’s journey since its inception in Perth, 2017.
Founded by Kym Atkins, Bernadette Olivier, Genevieve Hohnen, and Jade Hirniak, The Volte offers a revolutionary solution to fast-fashion consumption. This platform allows users to rent out their own clothes, effectively curbing fashion waste and promoting a more sustainable approach to style.
This investment comes after the successful raise of $700,000 in 2019 and the subsequent appointment of fashion mogul Kellie Hush as the platform’s creative director in 2022. Moreover, this funding round paves the way for a commercial partnership between The Volte and eBay, aiming to build on eBay’s commitment to re-commerce.
The Volte, witnessing double month-on-month bookings already in 2023, is thriving with over 70,000 listed dresses and 300,000 monthly active users. Some popular dresses witness hundreds of rental requests, earning lenders more than $100,000 annually from their designer wardrobes. Unlike traditional retailers, The Volte operates without holding any inventory, enabling users to monetize their wardrobes.
Bernadette Olivier, the CEO, and co-founder of The Volte, believes that the investment will drive the global consumer shift away from disposable fashion. “Our partnership with eBay will strengthen The Volte’s ambition to grow the circular fashion economy in Australia, reducing fashion disposability,” Olivier says.
This funding will allow The Volte to scale its marketplace and foster better integration with brands. The platform also looks forward to enhancing their services with innovative technology, like virtual try-ons and instant authentication.
In October 2022, The Volte launched a direct integration with retailers and designers, enabling users to list newly purchased items instantly for rental. The designers also earn royalties from their items each time one is rented or re-sold.
The startup has received support from the Australian tech community, including sharing economy startups Parkhound, Camplify, Mad Paws, and women founders from Prezzee and MadeComfy.
According to the Australian Fashion Council’s 2023 Clothing Data Report, Australia ranks second in the consumption of fast fashion, only behind the US. With every Australian purchasing an average of 56 clothing items each year, the country sends over 200,000 tonnes of clothing to landfill annually.
Olivier believes this investment will boost the platform’s growth and shift consumer behavior away from fast fashion towards durable designer fashion. “This shift not only changes the perception of fashion as an expense but also recognises fashion as an investment, capable of earning income. It disrupts the $420 billion fast fashion industry,” she comments.
The Series A round also saw participation from venture capital firm BetterLabs.
Brooke Eichhorn, eBay Australia’s head of fashion, is optimistic about the partnership. “This partnership with The Volte will enable us to continue challenging and changing what it means to buy, sell, and love fashion,” Eichhorn shares.
In conclusion, The Volte, with the strategic partnership of eBay, is poised to disrupt the global fast-fashion industry, promoting sustainability, and consumer empowerment.
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