Introduction
The fashion world is in the midst of a quiet revolution — one powered not by more new drops, but by the reimagined life of garments. Around the globe, the secondhand apparel market is charging ahead, and it’s reshaping how we think about sustainability, value, and style. In South Africa, one homegrown platform is capturing that momentum: Yaga, which just secured a decisive €4 million (~R80 million) from major backers including H&M Group Ventures. This vote of confidence isn’t just about capital, it’s an affirmation that the circular fashion economy is fully arriving in the South African context.
The Global Resale Boom
According to ThredUp’s 2025 Resale Report, the global secondhand apparel market is projected to reach US$367 billion by 2029, growing at a compound annual growth rate (CAGR) of approximately 10%. What’s more, online resale is seeing some of the fastest acceleration: in 2024, it grew by 23% year over year, and is expected to nearly double over five years.
This surge is being driven by multiple forces. Consumers – especially younger generations, are increasingly thinking “secondhand first,” prioritizing affordability, sustainability, and uniqueness. Meanwhile, technology is lowering friction. Tools powered by AI are improving search and discovery, and social-commerce models make preloved shopping feel as seamless as tapping through any trendy feed.
Yaga in South Africa
Enter Yaga. Originally founded in Estonia, Yaga expanded into South Africa around 2020, and has since become a significant player in the local circular fashion ecosystem. The platform enables users to buy and sell pre-loved fashion with ease, leveraging a secure escrow payment system, localized logistics, and no seller fees, – meaning sellers keep 100% of their revenue once a sale is completed.
Yaga’s impact is tangible: its sellers have collectively generated over R500 million in earnings since 2020, and nearly two million items have been listed and sold on the platform. The business is not just reversing fashion’s waste logic; it’s also creating real economic opportunity for everyday South Africans.
The Big Funding Win
The recent €4 million raise (about R80 million) is a major milestone. The round was led by Specialist VC, with investment from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and angel investors.
H&M’s involvement is especially symbolic. As a global fast-fashion giant with increasing investments in circular initiatives, backing Yaga underscores how legacy fashion players are taking secondhand seriously – not just as a CSR play, but as strategically important to the future of retail.
Yaga has said it will use this funding to deepen its presence in South Africa, scale its operational team, enhance logistics and payment infrastructure, and potentially expand into new markets.
Why This Matters for SA & the Circular Economy
This isn’t just a capital-win story. Yaga’s funding reflects a larger shift: investors increasingly view resale as more than a niche trend – it’s a foundational pillar of the next-gen fashion economy. In South Africa, Yaga’s traction demonstrates the proof of concept: local consumers are ready, and local entrepreneurs can deliver.
More broadly, this could signal a maturation of the circular fashion ecosystem in Africa. As resale becomes more mainstream, platforms like Yaga could spur broader economic inclusion, reduce textile waste, and challenge the dominance of linear consumption.
Risks & Challenges
Of course, the road ahead is not without its obstacles. Yaga faces competitive pressures — from global resale giants and emerging local players. Scaling logistics is hard work, particularly in a country where delivery infrastructure and costs can be significant. There’s also the risk of greenwashing, especially as fashion companies increasingly lean into “pre-loved” narratives.
Trust remains essential. Yaga’s escrow payments help, but continued investment in verification, quality checks, and user experience will be critical if they want to maintain credibility as they scale.
