Three European impact funds invest 7 million euros in second-hand fashion company Patatam

EVPA Member Creas (Spain), Quadia (Switzerland) and Colam Impact (France) lead the operation that will enable Patatam to strengthen its commitment to the circular economy and consolidate its European leadership in second-hand fashion in the B2B sector.

Three European impact funds invest 7 million euros in second-hand fashion company Patatam
Syed Mahamudur Rahman, NurPhoto, Getty Images

Madrid, June 3, 2021 - Patatam, a sustainable company with a solid track record in the second-hand fashion sector, has closed a €7 million financing round in which three European investment funds specialized in social and environmental impact projects have participated: Creas (Spain), Quadia (Switzerland) and Colam Impact (France). This transaction will allow the company to continue developing its commitment to the circular economy and consolidate its position as a European leader in second-hand fashion in the B2B sector.

This capital injection will mainly be used to strengthen Patatam´s supply chain and improve logistics to meet the growing demand from its general partners (Auchan France, Auchan Poland, Système U, Cora France, Cora Belgium, Carrefour France, Carrefour Spain and Leclerc), specialized partners (Kiabi, Gémo and Décathlon) and e-commerce partners (Spartoo, Kiabi Seconde Main, Auchan Marketplace and Leclerc Marketplace).

The next step in Patatam's expansion is to open new markets, starting with Spain. The company has recently launched two corners in Carrefour centers and is finalizing the sale of its second hand as-a-service to customers such as Kiabi, with five new stores in September.

"We are very pleased to bring Quadia, Creas and Colam Impact on board the Patatam adventure. These past 12 months have validated our strategic shift to become the leading player in B2B second-hand fashion. Our resale and collection solutions are now integrated with more than 15 different brands and more than 300 stores in France, Belgium, Spain, and Poland. The arrival of Quadia, Creas and Colam Impact will allow us to develop our logistics tool, essential to meet our customers' demand, but also to rely on their expertise in environmental and social impact management, essential to grow while maintaining a positive impact!" notes Eric Gagnaire, co-founder and president of Patatam.

"Patatam has the potential to become one of the flagship social and environmental impact companies in Europe because of its founders' commitment to sustainability, its circular value proposition at scale for consumers, retailers and the fashion industry, and its focus on generating social impact by facilitating the employment and development of people at risk of social exclusion. We are very pleased to support the company's expansion from France to Spain and the rest of Europe. Patatam is a clear reference in the portfolio of our Creas Impacto fund and an investment that inspires and reflects our vision of building a meaningful world", say Emilio Ayanz and Lorenzo Guerra, in charge of the investment from Creas Impacto.

"Patatam offers a model of fashion consumption that is both moderate, of low environmental impact, and inclusive. It responds to all the economic, social, and environmental challenges of this decade and opens up real prospects for transforming the value chain by involving and empowering the various stakeholders. Once again, we are delighted to support a successful company in building a regenerative economy on a European scale," says Marion Schuppe, Quadia's Investment Director.

"Patatam proposes a triple value creation - environmental, social and economic - capable of contributing to the major challenges facing our troubled world. Patatam's ability to mobilize all stakeholders in the chain will make it a key player in the systemic change of an industry in full revolution. Colam Impact is particularly proud to support Eric Gagnaire, Rudy Secundino and their team in this ambition," says Augustin Debiesse, President of Colam Impact.

Agreements and logistical improvements

The crisis caused by the Covid-19 pandemic has been a trend accelerator and second-hand fashion is benefiting from it. Patatam is thus responding to a double challenge, the fall in purchasing power and the environmental impact of the sector. "This round, led by European impact investment funds, will enable us to make our one-piece logistics as efficient as possible and guarantee our partners replenishment in a very short time, while maintaining our level of quality and controlling the environmental impact," stresses Rudy Secundino, CFO and partner of Patatam, who says he feels "very honored by the trust placed in us by Quadia, Creas and Colam Impact, as well as by our banking partners: Société Générale, BNP Paribas and, above all, Crédit Agricole Pyrénées Gascogne (CAPG)”.

The transaction was supported by financial advice from 2Cfinance, legal advice from AAPS Avocats and Velvet Avocats, and HR advice from Cobalt Partners.

About Patatam

Since its creation in 2013, Patatam has become one of the European leaders in B2B second-hand fashion processing. With more than 300 collection points and/or outlets set up by its partners in the fashion and retail sectors, Patatam currently collects and ships more than 200,000 garments per month. With its current team of 120 employees, based in Hastingues, in the southwest of France, Patatam has acquired a unique expertise in the second-hand fashion sector, which it makes available to its partners wishing to participate in the circular economy.

About Creas

Creas is the pioneer and benchmark impact investment manager in Spain and the first BCorp certified manager in the country. Creas supports startups and SMEs committed to the creation of social value that propose innovative and scalable solutions in three key investment areas: Education and Employment, Sustainability, and Care and Wellbeing. Creas has invested in more than 15 companies since its founding in 2009 and currently manages Creas Impacto, a €30M fund invested by the European Investment Fund and FondICO. Creas seeks to generate systemic and transformative change, mobilizing capital, energy, and talent. From the conviction that a different world, more just and inclusive, more equitable, and more responsible, is possible.

About Quadia

Founded in 2010 in Geneva, Quadia is one of the pioneering impact investment managers in Europe. Quadia supports companies whose strategies are based on more sustainable products and services, built around new paradigms that contribute to the definition of a regenerative economy. These companies operate in the fields of clean energy, sustainable food, and circular products and consumption patterns. Since its creation, Quadia has financed more than 40 companies, projects and funds totaling 220 million euros. In France, Quadia supports, among others, Ynsect, La Ruche qui dit oui, Les Coteaux Nantais, Miimosa and Sofi Groupe.

About Colam Impact

Colam Impact, the impact investment subsidiary of the Colam Entreprendre Group, aims to develop innovative companies with social and environmental impact by investing in them and providing long-term support to the men and women who run them. Colam Impact invests patient capital to finance a profitable and sustainable model, and mobilizes the Group's partners to identify, select and support the development of these companies.