Yaga has secured €4 million in pre Series A funding to accelerate its secondhand fashion marketplace across the Middle East and Africa, marking a significant step in advancing sustainable fashion in high growth markets. Led by Specialist VC with participation from H&M Group Ventures, Trind Ventures, Startup Wise Guys, and key angel investors, this funding round will enable the company to scale its operations, enhance platform capabilities, and meet the growing demand for affordable, eco conscious fashion alternatives.
Founded by Aune Aunapuu, Yaga has rapidly established a profitable footprint in Estonia and South Africa, achieving a GMV run rate of over €50 million with a lean team of 25. The platform has become a trusted marketplace for circular fashion, empowering users to buy and sell pre loved apparel with a seamless digital experience. Its expansion into Kenya reflects the company’s strategic focus on fast growing markets where ecommerce adoption and sustainability awareness are accelerating.
With more than KSh 4.2 billion already earned by sellers in South Africa, Yaga is showcasing how resale platforms can generate tangible economic value for individuals while promoting environmental responsibility. The funding will allow further development of marketplace infrastructure, driven by co founder Karl Erik Kotkas, to support rapid scalability and enhance user engagement across diverse markets.
Yaga is tapping into a global shift toward circular retail, with major fashion companies and regulators intensifying efforts to reduce textile waste and promote sustainable consumption. As consumer spending tightens and environmental concerns rise, the secondhand fashion market is moving from niche to mainstream, and Yaga is positioned at the forefront of this transformation in Africa and the Middle East.
This latest investment underscores growing investor confidence in digital platforms that deliver both profitability and impact. By aligning economic opportunity with sustainability, Yaga is redefining the future of fashion consumption and contributing to a more resilient, inclusive, and environmentally responsible global fashion ecosystem.
