Dubai-based online marketplace The Luxury Closet secures investment from Huda Beauty

UAE-based luxury resale marketplace The Luxury Closet (TLC) has secured an investment from Huda Beauty Investments (HBI), it announced on September 7.

The partnership will look to harness the understanding of consumer behaviour in fashion and beauty, drive brand awareness and increase the adoption of resale.

HB Investments will become one of the principal shareholders of The Luxury Closet alongside existing shareholders Middle East Venture Partners (MEVP), Wamda Capital, Knuru Capital and Precinct Partners.

The Luxury Closet has gathered investments of $11m from investors including Huda Beauty Investments, it announced.

HB Investments (HBI) is the private investment office of the founders of Huda Beauty: Huda, Alya and Mona Kattan, Christopher Goncalo and is led by CEO, Karan Wats.

“Given the economic situation, people are increasingly valuing circular businesses as they are an affordable and sustainable way to refresh their wardrobes. This has expedited The Luxury Closet’s growth across market cycles. HBI’s investment in The Luxury Closet is excellent news for our company. The partnership will help us bring the concept to a whole new audience,” said Kunal Kapoor, CEO and founder of The Luxury Closet.

“I have always been an advocate of circular fashion, and I am very excited about our endeavours with The Luxury Closet. At the beginning of our entrepreneurial journey, we did not have the means to purchase Fashion Luxury items and thus opted for vintage and second-hand shops. I’m very pleased to be part of the board alongside like-minded individuals, and a business that offers a unique service that fills a major gap in the market,” said Mona Kattan, co-founder and global president of Huda Beauty.

Huda Kattan, chairperson of HB Investments and founder of Huda Beauty, said: “Sustainability is one of our primary focuses and a core tenant for the HBI portfolio. In our continued effort to champion responsible and eco-friendly businesses, we couldn’t be more enthusiastic about our partnership with The Luxury Closet.”

The Luxury Closet targets the resale of perfect condition items from high-end brands like LV, Hermès, Rolex from sellers across the Middle East. TLC has listed 80,000 items from 5,000 sellers worth $120m in the last 12 months.

Founded in 2012, TLC’s direct-to-consumer sales in the MENA region represent 60 per cent of revenues.

Awad Capital, a DIFC-based and DFSA-regulated firm, is advising The Luxury Closet on its on-going capital raising.

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