Yaga, the Estonia based online marketplace for secondhand fashion, has secured €4 million in pre Series A funding as it looks to accelerate growth in the Middle East and Africa.
The round was led by Specialist VC, joined by H&M Group Ventures, Trind Ventures, Startup Wise Guys, and several angel investors. The funding will enable Yaga to expand operations, improve its platform, and capture rising demand for sustainable and affordable apparel across fast growing markets.
Founded by Aune Aunapuu, Yaga has built a strong presence in Estonia and South Africa. The company operates with a 25 person team, is profitable, and reports a €50 million plus GMV run rate, which places it among the few marketplaces in the region that generate positive returns at this stage.
“Secondhand is no longer niche. It is becoming the better choice for consumers,” Aunapuu said in an interview. “Better for wallets, better for the planet, and better for communities. And in the Middle East and Africa, the appetite for circular fashion is accelerating fast.”
Aunapuu credited co founder Karl Erik Kotkas for playing a key role in the development of Yaga’s technology and marketplace infrastructure. “A marketplace is not just a website. It is tough decisions, ruthless prioritization, and building teams that can scale,” she said.
Yaga is operational in South Africa and has expanded to Kenya following four successful years in South Africa, where sellers have collectively earned over KSh 4.2billion.
Global fashion companies, including H&M, are increasingly shifting toward circular retail as regulators target textile waste and consumers push for more sustainable and cost conscious options. Yaga aims to position itself at the center of this transition in regions where ecommerce adoption is rising and resale culture is already well established.
With consumer spending tightening worldwide and fast fashion under growing environmental scrutiny, profitable resale businesses like Yaga are emerging as resilient and impact driven alternatives.