The second-hand market has been booming in recent years, with start-ups emerging in almost every vertical. The one dedicated to sporting goods has not escaped the rule and has just lost one of its main players: Barooders.
The young French company was placed in receivership this summer by the Créteil commercial court. When contacted, its management confirmed the imminent end of its operations. Barooders was founded in 2020 by Edwige Michau and Geoffroy D’Autichamp, a couple who are passionate about sports.
Their goal was to offer outdoor sports equipment (clothing, surfboards, snowboards, bikes) at more affordable prices. While the financing conditions were favorable, the young shoot raised 1.3 million euros in 2021, then 2.5 million euros a year later from Kima Ventures and business angels from French Tech.
She was also able to count on the support of sports personalities to make herself known, such as Nikola Karabatic, a handball legend, the French rugby player Gaël Fickou, and the Swiss tennis player Stanislas Wawrinka, winner of three Grand Slam tournaments.
A pivot that is not enough
But that was not enough. The company, which recorded a net loss of 1 million euros in 2022 (2023 figures are not available), was unable to refinance itself to continue the adventure, nor find a buyer after being placed in receivership.
Barooders was operating in a competitive market, with start-ups such as Campsider and Everide. It also had to face major sports brands such as Decathlon or e-commerce sites (Amazon, Leboncoin, etc.) which also stock their shelves with reconditioned products.
To defy the headwinds, Barooders pivoted to focus on the second-hand bicycle market. “We had an average basket of 1,600 euros, which allowed us to exceed 5 million GMW (business volume, editor’s note),” emphasizes Edwige Michau. But, there too, there were people in the niche (Upway, Loewi, Rutile, Alltricks), even if all these companies do not have exactly the same economic model. Barooders worked directly with reconditioners in order to have the widest possible catalog. “We had neither workshop nor mechanic,” explains the boss.
Global trend
Barooders is far from being the only second-hand start-up to hit a rough patch. At the beginning of the year, Rediv (formerly Patatam) was placed in receivership, leaving 118 employees out of work. The company specializing in the purchase and sale of second-hand clothing nevertheless worked with several major retail chains (Carrefour, Auchan, La Redoute, etc.).
Beebs, a platform for selling products related to children (fashion, strollers, toys), was taken over by Kiabi in the commercial court after it was placed in receivership. It had raised €2.5 million in 2021, then €6 million a year later, and claimed to have 2 million users. When contacted, its founders (Morgan Hilmi and Arsène Huot) did not respond to our requests.
Another investor favorite, Wethenew, the second-hand sneaker specialist, is currently looking for a buyer. The young company, which claims a turnover of 80 million euros in 2023 and raised 20 million that same year, is talking about a market turnaround.
“We remain steadfastly committed to maintaining our leadership status, while welcoming takeover initiatives that will advance our vision and ensure a prosperous future for Wethenew,” said David Benhaïm and Michael Holzmann, co-founders and executives of the startup, in a statement. The same difficulty is faced by Bluedigo, the marketplace for refurbished furniture for the workplace, which entered receivership in May.
Low margins
Certainly, the appetite for second-hand goods is not diminishing. Nearly three out of four French people bought a second-hand product during the year 2023, all categories combined (+9 points compared to 2021), according to a recent study by Enov. These purchases are motivated by budgetary reasons rather than environmental ones.
But the economic equation behind the companies that offer these items is difficult. Margins are very low because of customer acquisition costs and a significant volume effect is needed to exist. This implies, at least initially, burning cash, which is no longer really fashionable at the moment among investors. “We have sensed a great deal of reluctance from venture capital funds,” emphasizes Edwige Michau.
Vinted, the pioneer of second-hand fashion, has nevertheless proven that it is possible: after sixteen years of existence, the Lithuanian unicorn became profitable for the first time in 2024. And it continues to open up to new types of products to satisfy its customers.
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