Estonian online resale platform Upty has expanded its presence in Europe by acquiring its Finnish competitor Rekki.
Upty made the acquisition in a cash and stock deal, but the financial terms of the transaction have not been disclosed.
The addition is intended to help Upty expedite its move towards sustainable fashion through a circular economy.
The platform said that its sellers and buyers will also benefit from the expansion in its product offerings.
The acquisition comes ahead of the European Union’s Extended Producer Responsibility (EPR) Scheme, which is expected to be implemented by 2024.
The programme forbids European trash collection companies from offloading collected clothes into land fields.
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Upty CEO Sergei Brek said: “Adding a well-established e-commerce player like Rekki to a fast-growing Upty platform marks the creation of a serious circular economy player, not just in the geographies where we currently operate but across all of Europe as eco-friendly fashion practices continue to gain traction in the market.”
Rekki CEO Tero Ylönen said: “Rekki is thrilled to be joining forces with Upty.
“The group has exciting and ambitious plans for the future and we are looking forward to contributing to the development of circular fashion across Europe as we expand our reach.”
In addition to acquiring Rekki, Upty has revealed plans to host a seed round in the coming months in an effort to expedite its European expansion strategy.
The company is seeking to expand into Germany at the end of this year.
Founded in November 2020, Upty is a resale e-store in the Baltic region that offers ‘like-new’ items at a discount of up to 90%.
The company currently operates in Estonia, Latvia, Lithuania and Finland, with plans to launch in Poland, the Czech Republic, the Netherlands and Sweden within the next two years.