Carousell Group has expanded its luxury segment by acquiring LuxLexicon, a Singapore-based luxury bags reseller and authenticated luxury consignment platform, today (April 2).
The secondhand marketplace is looking to extend its gains in the luxury resale market with the acquisition as it seeks to tap a market projected to reach US$7.5 billion by 2026. Over the last two years, the company said it has seen a surge in its high-end bag listings, with an increase of 71 per cent per month.
While Carousell did not disclose how much LuxLexicon was acquired for, filings with the Accounting and Corporate Regulatory Authority of Singapore show that Carousell paid for the deal in a mixture of cash and shares amounting up to S$2 million worth, the Business Times reports.
The acquisition will also allow LuxLexicon to leverage Carousell Group’s expertise in online recommerce and overseas expansion for future growth. LuxLexicon will continue to be led by its founder, Florence Low, and operate as its own brand, retaining its name, retail space, and team.
Carousell Group has also made acquisitions for fashion, mobiles and autos
Over the past couple of years, Carousell Group has been strengthening its recommerce foundations to drive the company’s multi-category approach on its top growth categories, including Luxury.
In 2023, it launched two initiatives to make buying and selling luxury bags more reliable and user-friendly, including the Carousell Certified Luxury program, which verifies the authenticity of high-end bags and the Sell to Carousell Luxury service, which allows users to sell or consign their bags to Carousell.
Marcus Tan, the co-founder of Carousell Group, says that he initially met Florence Low, the founder of LuxLexicon, to partner with the business for Carousell’s Certified Luxury programme.
“After conversations, we realised that we had a similar vision, and by joining forces with LuxLexicon’s expertise, we could help each other supercharge our luxury bag business in Southeast Asia, Hong Kong and Taiwan over the next few years,” he shares.
Apart from Luxury, the secondhand platform also had made acquisitions for fashion, mobiles and autos over the years. The acquisition of LuxLexicon follows the group’s 2022 acquisition of Indonesian electronics recommerce platform Laku6 and Singaporean omnichannel fashion recommerce retailer REFASH.
Although the company views organic growth as a top priority, Carousell Group will continue to seek acquisition opportunities with the “right partners across its focus categories and markets to accelerate the future of secondhand in Greater Southeast Asia”.
Featured Image Credit: Carousell Group
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