Resale tech startup Beni raises $4M

Dive Brief:

With the recommerce industry on the rise, secondhand shopping browser extension Beni announced it has raised $4 million in seed funding, according to a press release Tuesday. Buoyant Ventures led the funding round, and Better Ventures participated.
In a statement, Beni CEO Sarah Pinner said the company will use the capital to hire more employees and “accelerate the adoption of resale.” With the $4 million investment, the startup has raised $5 million to date, per the press release.
Beni is a browser extension that shows users apparel and accessories listings from leading resale platforms related to products they’ve searched for. The company has partnered with resale platforms like eBay, Rent the Runway and The RealReal. Beni has also worked with Patagonia on its resale pilot program, WornWear.

Dive Insight:

Beni cited ThredUp’s resale industry growth projections and the recent acquisition of Poshmark as signs that consumers are interested in the resale economy. In addition to Patagonia, the company said it is launching new resale partnerships with companies every month to bring more brands and retailers into the resale market, per the press release.

“Extending the life of our clothes is key to reducing waste and creating a more circular economy. It’s no secret that resale is booming, driven by consumer preferences for sustainability and cost savings. We were drawn to Beni’s unique and data-driven approach to unlock secondhand shopping for every consumer.” Lyndsey Boucherle, partner of Better Ventures, said in a statement.

Besides Beni, other resale platforms have caught the attention of investors looking to capitalize on the resale market’s rise. In December, Archive, another recommerce tech company, raised $15 million from Lightspeed Venture Partners and other investors, funding which will support its expansion in North America and Europe. It also named multiple noteworthy collaborators such as Oscar de la Renta, The North Face and Dagne Dover.

Though ThredUp predicts that the resale market will reach $82 billion by 2026, ThredUp’s growth can partially be attributed to its enterprise software. An October 2021 report from Wells Fargo noted that its resale-as-a-service business revenue could reach $300 million by 2025 and $925 million by 2029. In its Q3 earnings, ThredUp CFO Sean Sobers said the company will prioritize its RaaS operations in the future.