H&M Investment To Obtain Secondary Equity Trading Platform Sellpy Most Equity Interest

H&M group of Sweden's fast fashion giant announced that it will increase its Sellpy shareholding of second-hand idle goods trading platform through H&M CO:LAB of its wind power investment department.

H&M CO:LAB will invest 92 million Swedish kronor through the two level market transaction, which refers to the transfer of the rights of the non listed or non floating fund holders to the other party, plus a further investment of SEK 40 million, which will invest 132 million kronor (about US $13 million 400 thousand).

In addition, according to the financing agreement, H&M group will invest 60 million Swedish kronor in Sellpy in the next few years. After completion, H&M group will get a total of about 74% of Sellpy shares and become the majority shareholder of the company.

The above figure is from left to right: CO:LAB Nanna Andersen, Sellpy chief financial officer Philip Gunnstam, Sellpy chief executive Michael Arn Arn R, Sellpy chief operating officer Arn, chief executive officer of the group

Sellpy, founded in 2014 by Michael Arn R, is committed to providing more convenient second-hand goods trading services. Users only need to pack up the idle items they want to sell, and Sellpy will undertake logistics and sales processes. Once the items are sold, users can be divided into shares, and the items that are not sold will be donated to charity organizations.

In 2018, Sellpy turnover increased by 36% to SEK 117 million, but it has not yet been profitable. At present, Sellpy is starting from Germany and gradually expanding its international market.

Since 2015, H&M group has invested Sellpy 50 million Swedish kronor through CO:LAB. Regarding the increase of Sellpy equity, Nanna Andersen, head of CO:LAB, said: "we have been paying attention to Sellpy. We value its unique business mode and the common point of recycling and reuse in H&M."

In April this year, H&M group announced that it would launch a pilot project in Sweden to sell second-hand and antique costumes of its brand & Other Stories, and this pilot project is Sellpy, which is creating a "second-hand clothing" section for Other Stories on its website.

(Note: 1 kronor is currently about 0.7229 yuan).

About H&M CO:LAB

H&M CO:LAB, founded in 2015, is a venture capital organization of H&M group. It is committed to investing in fashion and retail, exploring the future of fashion through investing in enterprises that have "innovative business models and committed to sustainable fashion", and finally nurture H&M group.

H&M CO:LAB's portfolio includes: recyclable fabric company re:newcell, digital fashion house Ivyrevel, DTC brand ADAY, e-commerce payment provider Klarna, fashion electronics platform Thread, beauty beauty booking platform Dashl, etc.