Yaga Accelerates Global Growth with €4 M Funding and Strategic Expansion

Estonian‑based marketplace Yaga has secured a €4 million pre‑Series A round to further scale its second‑hand fashion platform and expand into emerging markets. The company will use the funding to deepen its presence in the Middle East and North Africa, grow its team, and strengthen its operations in existing markets.

Yaga’s model centers on enabling users to buy and sell pre‑loved fashion, leveraging user‑friendly logistics, escrow‑based payments, and an efficient catalogue of over three million items. Having already achieved a run‑rate GMV of more than €50 million while remaining profitable with a compact team, Yaga is proving that sustainable fashion can be a strong commercial business, not just a niche alternative.

What stands out is the company’s global ambition. Yaga has built a leading presence in South Africa and now views the Middle East and North Africa as its next growth front. With major backers including Specialist VC and retail giant H&M Group participating, the startup is benefiting from investor confidence that circular retail is moving from fringe to mainstream.

At a time when consumer awareness around sustainability is rising, second‑hand fashion is shifting into the spotlight. Yaga’s efficient business model—selling items typically 50‑80 percent below new retail price—addresses both cost‑sensitive consumers and the push toward reducing textile waste. Their success shows how the Baltics are exporting not just tech, but scalable commerce models into high‑growth regions.

Looking ahead, Yaga stands at the intersection of market demand, environment‑friendly consumption and global scale‑up. With this funding round, Estonia’s fashion tech sector strengthens its claim on international markets—and Yaga is set to lead the charge.

To read more - https://tradewithestonia.com/yaga-raised-e4-million-to-expand-its-secondhand-fashion-marketplace-globally/