Yaga, the social commerce company behind South Africa’s leading online resale marketplace, has secured a €4 million pre-Series A round to accelerate growth. The financing lifts total funding to €7.2 million and underscores investor conviction in second-hand fashion’s mainstream adoption. The company plans to deepen its presence in current markets while preparing for expansion across the Middle East and North Africa.
Funding Round and Investor Lineup
The round was led by Specialist VC, with participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and several angel investors. Yaga positions the mix as both capital and strategic expertise, especially in circular fashion and software-driven marketplace scaling. The company says this investor group aligns with its focus on product-led growth, trust infrastructure, and localized logistics.
What Yaga Does
Founded in Estonia, Yaga operates a peer-to-peer marketplace that emphasizes escrow-based payments and localized delivery to reduce friction for buyers and sellers. The platform holds funds until receipt is confirmed, which the company says strengthens trust and reduces disputes. Local courier integrations and seller tools aim to shorten delivery windows, streamline listings, and boost item discovery.
Traction and Market Position
Yaga reports a more than €50 million GMV run-rate, over six million items rehomed, and €80 million earned by sellers globally. The company adds that it attracts more than 12 million monthly visits and has scaled with a 25-person team and €3.2 million in prior capital. Management says Yaga now dominates South Africa’s online fashion resale category, with typical prices coming in 50-80 percent below new.
Market Context and Strategic Fit
Chief executive Aune Aunapuu frames the raise as validation of shifting consumer behavior shaped by inflation and sustainability priorities. The company points to global figures that show second-hand apparel grew about 15 percent in 2024 to reach an estimated $227 billion, with projections of $367 billion by 2029. Yaga argues that its South African adoption demonstrates the trend’s breadth beyond Europe and the United States.
Expansion Plan and Product Roadmap
New capital will fund three priorities, beginning with market expansion into MENA, where smartphone usage, cross-border logistics, and youthful demographics make social commerce attractive. Team growth across product, operations, and trust and safety will support reliability as volumes rise and communities scale. Product enhancements will focus on payments and delivery integrations and improved seller tools to speed listings and increase conversion.
Strategic Backing and Retail Convergence
H&M Group Ventures’ participation reflects a broader convergence between incumbent retailers and recommerce platforms anchored in circularity. Yaga’s traction in Africa complements the fashion group’s second-hand initiatives in other regions, offering potential partnership pathways. The company sees this alignment as an avenue to broaden supply, strengthen brand trust, and educate consumers about reuse.
South Africa Footprint and MENA Prospects
In South Africa, Yaga plans to invest further in resale infrastructure that matches price sensitivity with style diversity and dependable logistics. Management highlights community-led discovery, secure escrow, and localized couriers as ingredients that convert casual closet cleanouts into active micro-shops. The company says its playbook will guide entry into select MENA markets while Africa expansion opportunities, including Kenya and Nigeria, remain on the roadmap.
Yaga’s pre-Series A financing strengthens a model that blends capital efficiency, regional leadership, and consumer trust to advance circular fashion. With an expansion thesis centered on MENA and continued investment in South Africa, the company intends to meet rising demand for accessible, lower-cost fashion. The bet is that for a growing share of shoppers, the first choice will be pre-loved, priced right, and delivered with confidence.