PopChill, a luxury resale marketplace operating in Taiwan and Hong Kong, announced Wednesday that it had finalized a $3.1 million Pre-A+ funding round.

The company said in a statement that it secured an additional $1.3 million, bringing the total funds raised in this round to $3.1 million, inclusive of the earlier announced $1.8 million.

The new investors joining this round including Top Taiwan Venture Capital, is joining earlier participants including 500 Global, Acorn Pacific, ITIC, AVA Angels Fund, Acorn Pacific Ventures, and Darwin Ventures.

This new injection takes the total investment to $6.2 million.

PopChill plans to use this investment to reach break-even in Taiwan by the end of this year and expedite growth in the Hong Kong market.

They are also planning an expansion into a new market, with Singapore as the main target, within this year.

The firm also plans to bolster its workforce with a total of 18-20 new hires this year, including an increase in Taiwan’s staff from 26 to 35, an expansion in Hong Kong from 4 to 10 employees, and the addition of up to 3 personnel in a new market.

It is noted that the global resale luxury market has doubled in size over the past four years, instilling confidence in PopChill for successful expansion.

Cited the estimates from Bain & Company, the statement highlighted that approximately $49.3 billion worth of secondhand luxury products were sold worldwide in 2023.

Moreover, its key markets, Taiwan and Hong Kong are among the world’s highest per capita spenders on luxury goods, with recent Euromonitor reports, naming the latter as the top spender.

The estimated value of luxury personal goods in Taiwan is $8.1 billion, and in Hong Kong, from $3.2 to $5.4 billion.

Since launching last year, PopChill’s Hong Kong sales have rapidly grown, averaging a 40% monthly growth rate and now contributing 10 percent to the company’s total transaction volume.

Many Taiwanese had pre-owned luxury items they wished to sell, but before PopChill’s entrance, the Taiwan market had no secure platform for luxury resale.

Much of its success can be attributed to the use of authentication technology from AI company Entrupy, which provides a 99.1 percent accuracy rate.

The company’s annual gross merchandise value (GMV) for Taiwan is $18.5 million, with the monthly transaction amount exceeding $1.5 million. The average order value on the platform is $862.

The marketplace features over 100,000 items, in partnership with three of the top ten luxury resellers in Japan, as well as suppliers from Taiwan and Hong Kong.

The platform’s most popular brands, which are Chanel, LV, and Hermes, contribute to 60 percent of the total revenues.

Handbags constitute 80 percent of sales, and PopChill plans to diversify into watches and jewelry in the next 6 to 12 months.

“The potential for luxury resale in Asia is tremendous and largely untapped, with no clear leader outside of China. The key to success is security and we are reacting to this by constantly improving our authentication processes,” said Andy Kuo, Co-Founder, PopChill.

“We are confident in our potential to succeed in new markets, because not only can we bring our technology and know-how, but also our thousands of sellers that can ship cross-border,” he added.

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