Dive Brief:
- Resale platform Trove has acquired competitor Recurate, according to a Tuesday news release.
- The acquisition will allow Trove, which currently works with brands on resale site building and nonnew inventory management, to expand its offerings to include peer-to-peer trade-ins as well as e-commerce integration for Shopify-based brands, per the release.
- Trove’s 15 existing resale partners, which include Canada Goose, Carhartt, Patagonia and On, will be joined by 29 Recurate brands such as Steve Madden, Frye and Michael Kors, said Trove CEO Terry Boyle in an interview.
Dive Insight:
Prior to the acquisition, Boyle said Trove “had between 60% and 65% of branded resale traffic,” and following the completion of the deal, the company expects to control between 75% and 80% of that market in the U.S.
Both companies are private, and financial terms of the acquisition were not disclosed.
Wilson Griffin, Recurate’s co-founder and former CEO, will join Trove’s executive team, as will Adam Siegel, also a co-founder and the company’s former chief product officer and chief operating officer.
“Joining forces with Trove allows us to offer a one-stop shop with best-in-class resale solutions,” Griffin said in the release. “We’re excited to be able to offer these solutions to our existing customers while bringing more brands into resale.”
Boyle said that although Trove acquired a competitor in the market, the two companies offer different, complementary resale solutions.
“Essentially, they fill the gap in our product portfolio, because we do talk to a lot of clients that have an interest in peer-to-peer, and that’s not something we were able to service until now,” Boyle said, adding that he doesn’t expect the deal to change pricing structures on the client side.
“This is really about building a one-stop shop for brands so they can make an easier decision,” Boyle said. “We’re focused on having more of the market participate in resale. Once clients realize that it’s not only good for the environment, but it’s good for their business and drives profitable growth, then we start to see people participate, and that’s really what we’re focused on. And in some ways, this transaction makes it easier for brands to get into the space.”
Looking ahead, Trove is eyeing global expansion plans, particularly in the EU and the United Kingdom, per the release.
“We think that’s an exciting area,” Boyle said. “Both Trove and Recurate have already made the changes to the product to support the EU, and we're seeing a lot of activity there.”
