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H&M takes majority stake in second-hand fashion platform Sellpy

H&M Group has announced a follow-on investment in Sellpy, a re-commerce platform that sells second-hand clothes.

The move – instigated by the fashion retailer’s investment arm, CO:LAB – aims to support Sellpy’s international expansion but it also helps H&M’s aims of becoming a more sustainable operation.

H&M started investing in Sellpy in 2015, and has since then participated in all investment rounds. The most recent investment gives the retail group a circa 70% stake in Sellpy, meaning it is now the majority shareholder.

A statement released by H&M this week revealed it has invested approximately SEK50 million (£4.08 million) in Sellpy since 2015, as well SEK92 million in pre-existing investor commitments to private equity – also known as secondaries.

A follow-on investment of SEK40 million will be supplemented with a SEK60 million commitment over two instalments within the next few years. Once this full investment is carried through, H&M will have an approximate 74% stake in Sellpy.

Nanna Andersen, head of CO:LAB, commented: “We keep investing in Sellpy because we strongly believe in the company and the founders.

“Sellpy has a unique circular business model, which perfectly aligns with H&M Group’s vision to become fully circular.”

Founded in Sweden in 2014, Sellpy is now preparing for international expansion, starting with Germany. It’s CEO, Michael Arnör, said H&M’s support enables the business to “innovate and drive awareness and adoption of re-commerce”.

Sellpy is one of several long-term investments that CO:LAB has made in recent years. In 2018, the H&M investment arm took a stake in men’s fashion e-tailer, Thread, and buy now, pay later solution, Klarna.