Yaga is rewriting the rules of circular commerce in Africa. The Estonia-headquartered, South Africa–led startup has raised €4 million in pre-Series A funding, bringing its total to €7.2 million.
Beyond the numbers, the raise signals a shift in Africa’s e-commerce story from scale at any cost to sustainability with purpose.
As inflation squeezes wallets and eco-awareness rises, Yaga’s latest raise feels timely. It signals a maturing market where social commerce, once seen as side hustle territory, is becoming a genuine economic engine. Every closet, it seems, has the potential to become a business.
What This €4M Raise Says About the Future of Sustainable Commerce
The funding was led by Specialist VC, joined by H&M Group Ventures, Trind Ventures, Startup Wise Guys, and several angel investors.
Yaga plans to deepen its roots in South Africa, enter new MENA markets, expand its lean team, and build tools that make selling secondhand clothes feel effortless: quicker listings, smarter search, and even stronger trust features.
The investor mix speaks volumes. It shows where money is flowing: toward circular models that combine purpose with profit.
In many African countries, consumers care deeply about sustainability, with over 60% saying it matters but high delivery costs and scam fears remain barriers.
Yaga’s escrow-backed payment system and localised logistics fix those weak links, creating a smoother path for resale adoption.
This round, then, is growth fuel. A sign that investors see resale not as a trend but as infrastructure for the next era of digital trade.
From Side Project to Social Commerce Powerhouse
Founded in 2017, Yaga quietly built one of South Africa’s most trusted peer-to-peer fashion marketplaces. It solved what other platforms couldn’t: trust.
Escrow payments protect both sides, while local delivery partners handle last-mile logistics with minimal friction.
Behind the scenes, the company runs lean. A 25-person team powers a platform that sees 12 million visits a month and has helped rehome over six million items. That’s more than €50 million in GMV and €80 million returned to sellers globally.
Besides, it is already profitable. Yaga’s steady, community-first growth contrasts sharply with the “growth-at-all-costs” model that tripped up many global peers. Instead of hype, it’s built trust, and trust scales.
Why Timing Is Everything
Secondhand fashion is booming. Globally, the market hit $227 billion in 2024, growing faster than traditional retail. By 2029, it’s expected to reach $367 billion, expanding at nearly 10% annually, more than twice the pace of the wider fashion industry.
In Africa, that shift feels even more urgent. With prices climbing and fast fashion piling up in landfills, resale offers both relief and purpose. It’s affordable, sustainable, and local.
Yaga’s CEO and founder Aune Aunapuu captured it best:
“Second-hand fashion is no longer a trend; it’s becoming the first choice for millions of people who want both affordability and sustainability. Our growth in South Africa proves that this is a global movement.”
With new funding, Aunapuu is looking north to MENA’s emerging middle class and Africa’s broader circular economy push to bring the Yaga model to more markets.
From Waste to Wealth: The Circular Future Unfolding
Yaga’s rise is more than a business story. It’s part of a wider cultural shift where fashion becomes both community and currency.
A single resale can keep clothing out of landfills, cut emissions, and put money back into real people’s pockets.
As the company expands, expect ripple effects: more homegrown sellers, new regional logistics networks, and parallel startups chasing the same sweet spot of sustainability and inclusion.
In a global economy hungry for growth that actually matters, Yaga’s success offers a hopeful blueprint. One where fashion is accessible, circular, and profitable and where the next big marketplace might just start in someone’s closet.
Yaga: The Social Marketplace for Fashion and Resale
Yaga is a fast-rising online resale platform connecting fashion lovers across Africa. Through the Yaga app, users can easily buy and sell pre-loved items, making fashion more sustainable and affordable.
In Yaga Kenya, the platform has become especially popular for its growing community of local sellers offering quality Yaga clothing from casual wear to designer pieces.
Meanwhile, Yaga South Africa continues to lead the way as one of the most active markets, empowering users to turn their closets into income.
Whether you’re decluttering or shopping sustainably, Yaga makes secondhand fashion stylish and accessible.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
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