Singapore-based classifieds firm and unicorn Carousell Group has announced its acquisition of LuxLexicon, a luxury bag reseller and authenticated luxury consignment platform, for an undisclosed amount.
The acquisition comes as Carousell seeks to further grow its luxury category, one of its largest categories, to take on a larger market share of the burgeoning luxury resale market in Southeast Asia, Hong Kong, and Taiwan.
The luxury resale market value of these combined markets is projected to reach $7.5 billion by 2026, according to data by RedSeer Strategy Consultants.
Luxury continues to be a key focus for Carousell. The acquisition of LuxLexicon, Carousell Group co-founder Marcus Tan said, will accelerate the group’s ambition of “creating the largest managed marketplace for authenticated secondhand luxury bags”.
LuxLexicon was founded in 2016 and has one of the largest resale Hermes bag selections in Southeast Asia. The company said it conducts rigorous due diligence examination of every item before it gets listed for sale.
“This acquisition allows us to offer more variety of bags and recommend interested consumers to each other,” said LuxLexicon founder Florence Low.
The acquisition involves the business and assets of LuxLexicon, according to the announcement. Low will continue to lead the acquired company, which will operate as its own brand, retaining its name, retail space, and team.
Carousell was founded in 2012 as a marketplace for pre-loved goods by Siu Rui Quek, Marcus Tan, and Ngoo. Initially, the bulk of its transactions were from Singapore, but the company branched out to Malaysia and Taiwan in end-2014. In 2017, the company forayed into property and automotive listings.
The firm currently operates in seven markets and territories including Singapore, Indonesia, Malaysia, Taiwan, and Hong Kong. It also has offices in eight markets.
Carousell has acquired startups across emerging categories such as streetwear (OxStreet), used phones (Laku6) and secondhand clothing (Refash).
It booked $82.5 million in revenues for the financial year ended December 31, 2022, a 67% increase from the previous year. However, the company’s losses widened in the year as expenses also rose, show regulatory filings.
Carousell joined Southeast Asia’s unicorn club after raising $100 million in 2021 from STIC Investments, a South Korea-based private equity investor, at a valuation of $1.1 billion. Its other backers include Mirae Asset-Naver Asia Growth Fund and NH Investment & Securities.
