Correction: Due to erroneous information from a Galaxy press release, a previous version of this article incorrectly stated that Snapchat was involved in Galaxy's most recent round of funding and that the funding round was $7 million. Snapchat funded Galaxy's parent company through its accelerator program in 2019, but was not involved in the company's most recent funding round of $4.5 million. While Galaxy described the $7 million as "new" funding, it was in fact the total raised to date by the company.
Dive Brief:
- Gen Z-focused fashion resale platform Galaxy completed a $4.5 million funding round in the first quarter of 2022, with participation from investors Floodgate, RGH Capital and more, according to details shared with Retail Dive. To date, the company has raised $7 million.
- Galaxy, which utilizes machine learning to help users discover pieces, intends to use recent funds for “new, user-friendly features and increased opportunities for creators to feel empowered and earn a living on their own terms, in their own time,” per a press release shared with Retail Dive.
- Snap’s accelerator program, Yellow, took part in a 2019 funding round for Galaxy’s parent company Muze Inc alongside other investors.
Dive Insight:
The resale apparel industry is becoming increasingly popular, with new companies like Galaxy seeking to compete with established players.
“We believe in the power of machine learning to help you discover things that are perfect for you,” Galaxy co-founder and CEO Danny Quick said in a statement. “We build entertaining and engaging experiences which generate explicit data where users tell us what they like by interacting with our product.”
Galaxy is part of a booming industry, according to data by secondhand retailer ThredUp. The secondhand U.S. market is expected to more than double to $82 billion by 2026, according to a ThredUp survey from May.
The study also found that Gen Z and millennials are especially interested in resale, with 62% saying they look for secondhand options before buying new.
Galaxy’s platform looks and acts differently than Depop, another resale platform that targets Gen Z and was acquired by Etsy last year. Aside from the stark difference in branding, users first need to choose from a selection of style options — such as vintage, designer, handmade, etc. — before seeing what products are available.
Galaxy then shows users suggested products based on those preferences via a scrolling format, where users can view creators’ videos showcasing recommended items. On Depop, users search for items they might be looking for and are shown available options in a grid format.
