H&M Group has invested about SEK50m (US$5.07m) in Sellpy through CO:LAB since 2015

H&M Group has invested about SEK50m (US$5.07m) in Sellpy through CO:LAB since 2015

H&M Group has taken a majority stake in re-commerce business Sellpy, in a move that will support the platform's international expansion and also aligns with the Swedish fashion retailer's bid to become fully circular.

H&M Group started investing in Sellpy in 2015 and has invested about SEK50m (US$5.07m) through its investment arm CO:LAB. With its recent investment and purchase of secondaries for SEK92m and a follow-on investment of SEK40m, H&M has gone from being a minority shareholder to a majority owner, with an approximate 70% stake in Sellpy. 

The retailer says it will also invest an additional SEK60m (in two different instalments) "within a few years." When the full investment is carried through, H&M Group will have an approximate 74% stake in Sellpy.

"We keep investing in Sellpy because we strongly believe in the company and the founders. Sellpy has a unique circular business model, which perfectly aligns with H&M Group's vision to become fully circular," says Nanna Andersen, head of CO:LAB.

Second-hand is one of the fastest-growing business sectors within the fashion industry, enabling a sustainable, modern and personal customer offer and experience. It is a business opportunity H&M wants to explore as it helps customers give their old clothes a new life through re-use, thus contributing to a closed-loop for fashion.

Sellpy was founded in 2014 and has the potential to expand its current offer into a complete platform for second-hand fashion. The company is now preparing for international expansion, starting with Germany, which H&M Group is supporting through its latest investment.

"We are excited to continue to work even closer with H&M Group to empower everyone to live circular, regardless if they live in Sweden or elsewhere. With the support of H&M Group we can continue to innovate and drive awareness and adoption of re-commerce," says Michael Annör, CEO of Sellpy.

Sellpy is one of several long-term investments that CO:LAB has made within three different categories: innovative business models, sustainable fashion and enablers as it works to "explore what the future of fashion could be."