Estonian e-Store startup Upty acquires Finnish peer Rekki, opens up seed round
Estonian startup Upty, the resale e-Store in the Baltic region, announced the acquisition of its Finnish peer, Rekki. In addition, Upty is planning to kick-start the fundraising in the coming months in order to pursue the Company's accelerated expansion across Europe.
Upty successfully acquired its larger and more established competitor in a cash and stock deal. The joining of these two leaders in secondhand, or so called "preloved," e-Commerce marks the push towards sustainable fashion through circular economy. Upty's online retail platform allows consumers to de-clutter their closets whilst also allowing to purchase like-new items at a discount of up to 90%. With Rekki now part of the Upty family, sellers and buyers looking to participate in eco-friendly fashion resale will benefit from more choice than ever.
Sergei Brek, CEO,Upty: "Adding a well-established ecom player like Rekki to a fast-growing Upty platform marks the creation of a serious circular economy player, not just in the geographies where we currently operate but across all of Europe as eco-friendly fashion practices continue to gain traction in the market."
Upty's latest acquisition couldn't have come at a better time. The Extended Producer Responsibility (EPR) Scheme, which is expected to come into effect by 2024, means that the European trash collection companies will not be allowed to offload the collected clothes to the land field. Evidently, Upty's vision is in alignment with broader consumer and government trend toward textile reusage, recycling and waste reduction.
Tero Ylönen, CEO, Rekki CEO: "Rekki is thrilled to be joining forces with Upty. The Group has exciting and ambitious plans for the future and we are looking forward to contributing to the development of circular fashion across Europe as we expand our reach."