Second-hand clothing stores are certainly not a new concept, but, like most other businesses, they have moved online in recent years. European startup Vinted, for example, has found considerable success, raising tens of millions of Euro and claiming more than 8 million customers. But, despite the presence of this major player, Finnish startup Zadaa has just jumped into the ring with a peer-to-peer marketplace of its own.
Zadaa, which has released an app for iOS, is a fairly typical marketplace, allowing customers to sift through items that have been posted, favorite items that they find interesting, and message the seller, if questions arise. But where the platform aims to stand apart is with a tool that allows people to search for clothing based on their body type, ostensibly boosting the chances that the item you buy will actually fit you.
Zadaa states that sellers are required to deliver the item to the buyer within a week or the latter party will receive a refund. For its part, Zadaa generates revenue through a 20% commission on each sale that they process.
Zadaa launched in their home market of Finland early last week, so they are reluctant to reveal how many users they have at this time. However, they would say that they quickly rose into the top 50 among free Finnish apps in iTunes within just a few days. Co-founder Iiro Kormi tells me that they are treating Finland as a “test market”, in order to validate their idea, and that, if all goes well, they plan to move into countries like Germany, Sweden, and the United Kingdom. They have not yet raised funding, but Kormi says that he and his 2 co-founders have spent the past 5 months building the platform with their own money and have only just begun to think about external investment and that they have already received some interest from various investors, ranging from British VCs to Finnish angels.