WatchBox, an online trading platform dealing in luxury second-hand watches has successfully completed a funding round, raising $US165 million ($AU229 million) in equity capital, which will be put towards plans for global expansion.
The Philadelphia-based trading platform has earned $US260 million ($AU363 million) since its establishment in 2017, and it has subsequently opened retail outlets in North America, Asia, and Europe, in addition to its international e-commerce platform. The capital raised will be used to increase its retail store count and expand its stockholdings.
The business has attracted several well-known investors, including National Basketball Association former players, Michael Jordan and Giannis Antetokounmpo.
Justin Reis, CEO WatchBox, said the company was on track to meeting its targets, and if this trend continued it would consider holding an Initial Public Offering in the future; “WatchBox’s sales are up 40 per cent year over year, we are on target to achieve $300 million ($AU417.8 million) in sales.”
Reis explained that the company’s high-profile investors would help it achieve its earnings goals, as “they are customers of ours, so they have authentic relationships.”
He added, “They will help us build a profile as we build the company.”
There have been suggestions that the market for second-hand luxury watches could be as much as $US20 billion ($AU27.8 billion), increasing at a rate faster than the primary market. A recent study published by Deloitte, an international auditing and financial consulting firm, indicated that nearly one in three consumers would purchase a second-hand watch during the following year, a trend driven by younger buyers.
Several reasons are behind this, including the reduced cost of pre-owned pieces, investment purposes, and access to discontinued models.