Chalhoub Ventures Joins Wethenew's $22 Million Funding Round for ME Expansion
Paris-based resale platform Wethenew, specializing in sneakers and streetwear, has successfully closed a €20 million round of Series B funding. The funding round was led by C4 Ventures, a venture firm based in Paris, with participation from Singular, a previous early-stage investor. Chalhoub Ventures, the investment arm of Chalhoub Group, one of the Middle East's leading luxury goods retailers and distributors, also joined the round. In addition, Athletic Ventures, a collective of current and former athletes funding consumer tech companies, as well as French soccer player Antoine Griezmann, contributed to the funding.
Launched in 2018 by David Benhaim and Michael Holzmann, Wethenew crossed the €100 million turnover mark in late 2022 and is on track to be profitable by the end of 2023, according to a report by Women Trends.
"Singular has chosen to continue to trust us. We must have done something right," says Michael Holzmann, co-founder of Wethenew, in an interview with Fashion Network. He acknowledges the achievement of raising a larger sum than initially expected, attributing it to the company's improved profitability ratios and optimization of logistics costs. The success of this funding round in the current investment and M&A market, which has recently slowed down, is noteworthy.
Holzmann emphasizes the strategic value of the investors who joined the funding round. C4 Ventures will provide extensive technical expertise, while Chalhoub Group's involvement presents an opportunity for international distribution, leveraging their own brand, Level. He stated, "We will be able to work together on opportunities in the Middle East."
David Benhaïm also reveals that the Spanish site is already active, and the platform will soon launch sites in Germany, Belgium, the Netherlands, and Italy. The goal is to scale up the company's model to a European level and duplicate its success in different countries. Currently, around 20% of Wethenew's sales come from outside France, and the company aims to increase the international share of its turnover to 40% by 2026.
With the €20 million funding, Wethenew is poised to accelerate its growth trajectory and solidify its position as a leading online destination for sneakers and streetwear in Europe. The funds will also be used to invest in teams and technological advancements, including AI integration and the development of CRM tools, ensuring competitive pricing and personalized product proposals for both sellers and buyers.