Following a new investment, H&M Group has acquired a majority stake in re-commerce platform Sellpy. The investment should support the platform's expansion abroad, as well as fitting in with H&M's objective of becoming more sustainable.
Circular business model
H&M Group joined Sellpy in 2015 and has taken part in all investment rounds since then. Through its recent investment, H&M has grown into a majority shareholder, with an interest of approximately 70%. "We continue to invest in Sellpy because we strongly believe in the company and its founders. Sellpy has a unique circular business model, which perfectly aligns with H&M Group's vision to become fully circular“ says Nanna Andersen, head of CO:LAB, the fashion group's investment arm.
Sellpy was founded in 2014 and since then, has grown into a successful second-hand platform. It now wants to develop its activities on an international level (starting in Germany), an ambition that H&M Group is supporting through the new investment.
The future of fashion
The second-hand clothing market is becoming increasingly important and H&M is very much aware of this. The growth is linked to the increasing demand for sustainability and increasing concerns about the sustainability of fast-fashion. In Sweden, the fashion group has already experimented with the sale of second-hand clothing via the website of the brand & Other Stories.
Sellpy is just one of many long-term investments that CO:LAB has made in innovative business models and sustainable fashion. Through these collaborations, H&M Group, together with leading entrepreneurs in the industry, can explore what the future of fashion might look like.