Twice, The Consignment Shop Of The Internet, Raises $18.5 Million

Twice lets users mail in gently used clothes for money, or shop online for new clothes, sorted by brand, size, color, and style.

Twice, a marketplace for second-hand clothing, announced Thursday it has raised $18.5 million in a series B round led by Jeff Jordan of Andreessen Horowitz with participation from existing investors, bringing the total amount raised to $23 million. Jordan, former CEO of OpenTable and president of PayPal, will be joining the board. The company intends to use this financing to expand design, engineering, operations, and its executive team as well as to renovate a newly leased 25,000-square-foot warehouse in San Francisco.

Two-year-old Twice aspires to become the consignment shop of the Internet. Cofounder Noah Ready-Campbell said most brick-and-mortar consignment stores lack an online presence, and the clothing inspection process can be time consuming, not to mention uncomfortable. "A lot of people don't like the experience of having their closet be judged by someone standing across from them," he told Fast Company.

Instead, Twice users send in gently used clothes (shipping is provided) to its warehouses in San Francisco where members of its operations team review, measure, and photograph each item. Though Ready-Campbell says consignment stores are often disorganized and challenging to browse, Twice lets its customers filter garments by brand, size, color, and style. "If you're a buyer going into those stores, it's great if you're in the mood for a treasure hunt," he said. "It's not so awesome if you need to buy a blouse."

In November, the company released an iPad app, followed by an iPhone version a month later. Together, they are seeing "thousands of downloads a day," Ready-Campbell said, adding Twice had sold "hundreds of thousands of garments in 2013" while declining to provide specific figures. Fast Company reported in 2012 that Twice was bringing in $100,000 a month in revenue, but he said the amount "has grown a fair amount since then."

[Image: Flickr user Roberto Trm]

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3 Comments

  • Donna Herron

    I agree totally with the comment below. I shudder to think what my downtown community would become if all of the solid brick and mortar consignment shops all decided to close up and go online. This online consignment shopping and all online shopping is really hurting our local consumer economy.

  • Ellie Bates

    These online consignment store are popping up everywhere many of whom are finance by the big Wall Street guys. I'll never use them. Here's why. First, it hurts LOCAL BUSINESSES! The "shop local" movement is gaining momentum and firms like these do nothing but take away money and JOBS from local communities. Second, your not helping LOCAL citizens in need with donations. Local consignment stores donate to LOCAL communities (Hospice, Food Banks, etc.). Sure, online stores donate too but why not help those in your OWN community! Third, it's hard to buy clothing online, especially USED clothing! Pictures never tell the whole story and of course no two pieces of clothing fit the same, even the same brands! Fourth, unlike what the article states, most consignment stores organize their clothing by color, size and style. I was in a store yesterday and all their sweaters were neatly organized and color coordinated on a single rack (found a fab INC sweater for $14.00!). SHOP LOCAL!