Start-up. Second-hand goods in search of a second wind

© Unsplash/Nik

In recent months, Several start-ups offering second-hand products have encountered financial difficulties. A situation that can be explained not only by a cash-intensive model, but also by the uncertain economic context.

< h2>Barooders, Wethenew, Beebs…

This summer, the platform dedicated to sports equipment and reconditioned bicycles Barooders was placed in receivership. Having obtained the support of the famous handball player Nikola Karabatic, it had nevertheless raised 3.8 million euros since its creation in 2021.

This is not the only start-up dedicated to second-hand offers to experience such an outcome. Rediv, a young Landes-based company specializing in clothing logistics, was also forced to cease its activity. In partnership with giants such as Auchan, Carrefour and La Redoute, it had completed a funding round of 12 million euros in 2022.

Wethenew, a sneaker buying and reselling platform, is looking for a buyer. Last year, it signed a €20 million fundraising round, obtaining financial support from Antoine Griezmann, a famous player for the French national football team and Atletico Madrid.

And that's not all. Beebs, a start-up specializing in children's products such as childcare, toys and second-hand textiles, went bankrupt in March 2024. However, it was bought by Kiabi, whose roadmap includes promoting second-hand items.

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Financing crisis

Paradoxically, demand for second-hand products remains high. Nearly 3 out of 4 French people bought a second-hand product in 2023, all categories combined, according to a study by the analysis firm Enov.

Despite the appeal of consumers, start-ups that launch into this sector encounter great difficulties in being profitable. One of the reasons is low profit margins: companies must invest a lot of money to attract customers (advertising, marketing), which weighs heavily on their budget. To compensate, they are forced to sell large quantities of items, but this often requires significant initial funding.

In an unfavorable context for financing, investors are now less inclined to inject cash into such start-ups. Sectors such as AI, deeptech and greentech are currently favored.

In addition, these young shoots operate in a highly competitive industry. Beyond the many rival start-ups, they also have to face retail giants. The latter are increasingly turning to reconditioned goods, grabbing market share from their new competitors.

• In recent months, several start-ups operating in the second-hand sector have been placed in receivership or liquidation
• The latest is Barooders, whose platform offers sports goods
• A phenomenon that can be explained, in part, by the crisis affecting the financing sector

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