Used-furniture marketplace Kaiyo lands a $36 million Series B funding round

Used-furniture marketplace Kaiyo is cashing in on the resale revolution. The company, which was founded in 2014, said revenue has grown by more than 100% YoY, and today, it announced a $36 million Series B funding round led by Edison Partners.

• The resale-furnishings category is projected to grow 54% by 2025, 3.5x faster than traditional retail, according to a Resale Report from Chairish, another furniture-resale company.
• Sales for secondhand furniture are expected to hit $16.6 billion over the next five years, a 70% jump from 2018.

Get this show on the road: Kaiyo will use the fresh funds to expand from its home market in the Northeast—the NYC, Philly, and DC areas, primarily—to California. Its white-glove pickup and delivery service will roll out in Los Angeles first, followed by San Francisco.

• The company decided to go west after an analysis of consumer behavior in San Francisco and LA found that people there favor secondhand.
• A portion of the funding will be also spent on hiring across teams, plus marketing campaigns, starting in the Northeast.

Making furniture resale comfy: CEO and founder Alpay Koralturk chalks up Kaiyo’s continued growth to creating a convenient “full-service,” same-day customer experience; the company vets, cleans, photographs, and delivers the goods.

Koralturk also said the company’s tech investments in pricing and curation algorithms have been key. “We’re not a fire-sale company,” he told Retail Brew. “We’re also not a company that just prices everything with a blunt, sledgehammer approach.”—JG