Vestiaire Collective valued at $1.7 billion in Softbank-led fundraising

PARIS (Reuters) - Second hand luxury site Vestiaire Collective on Wednesday said it had completed another fundraising round led by Softbank that valued the firm at $1.7 billion, in a boost for the used clothing market that is starting to attract fashion groups too.

Paris-based Vestiaire Collective, which competes with resale platforms such as RealReal, already counts Gucci-owner Kering among its investors.

Large luxury goods groups have been circling the second hand market, one they had long shunned, as it picks up steam thanks to online platforms.

Handbags in particular can fetch high prices even when they are pre-owned, creating buzz around some vintage products, and younger environmentally conscious consumers are increasingly drawn towards new consumption models.

Vestiaire Collective said it had raised 178 million euros in the latest fundraising, with Softbank and Generation Investment Management.

Some existing shareholders including Bpifrance, Conde Nast, Eurazeo and funds managed by Fidelity International and Korelya Capital also re-invested.

Softbank will have a seat on Vestiaire Collective's board, the company said.

This week another French business, blockchain-based fantasy soccer game Sorare, raised $680 million in a funding round also led by SoftBank.

Paris-based Sorare said the investment valued the company at $4.3 billion.

(Reporting by Sarah White and Mimosa Spencer; editing by Jason Neely)