Carousell acquires luxury bag reseller LuxLexicon, expands presence in luxury segment

CAROUSELL has acquired luxury bag reseller LuxLexicon in a bid to expand its presence in the luxury segment.

The platform is looking to extend its gains in the luxury resale market, as it seeks to tap a market projected to reach US$7.5 billion by 2026. Carousell’s luxury bag listings have grown monthly by 71 per cent over the last two years.

Luxury remains a key focus category for Carousell, said co-founder Marcus Tan on Tuesday (Apr 2). “Our ambition is to create the largest managed marketplace for authenticated second-hand luxury bags where users can buy and sell with trust and convenience.”

The acquisition will aid in the growth of Carousell’s luxury segment, with an offline presence to complement the current online channels and grow its luxury offerings.

The deal with LuxLexicon will also expand Carousell’s physical presence beyond its one-north office. The luxury bag reseller has a shopfront along Orchard Road, in the upmarket shopping centre Palais Renaissance.

Carousell noted that LuxLexicon has a “strong reputation, wide supply in premium luxury bag resale and consignment, and deep expertise in offline retail”, adding that the acquisition will allow it to leverage Carousell’s “expertise in online recommerce” and overseas markets.

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Recommerce, or reverse commerce, refers to the sale of previously owned products, typically through online channels.

LuxLexicon founder Florence Low noted that the deal will also allow both parties to offer a greater variety of bags, and “recommend interested consumers to each other”. She will continue to lead LuxLexicon, which will operate as a separate brand, retaining its team, name and retail space.

Tan said the acquisition is a “familiar playbook” for Carousell, which previously acquired founder-led businesses including recommerce platforms Refash, which deals in fashion, and Laku6, which deals in electronics.

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, with up to S$2 million worth of Carousell shares and an undisclosed cash portion.

The platform will continue to seek suitable acquisition targets aside from growing organically, Tan said, noting that the “right partners” would aid in making “buying and selling second-hand items more trusted and convenient”.

He added that Carousell is keen to speak with founders in its key markets – Singapore, Indonesia, Hong Kong, Malaysia, the Philippines, Taiwan and Vietnam.

“Additionally, we would also explore options where an offline experience helps increase participation in the circular economy and combine with our online expertise to provide an omnichannel experience,” he added. “For instance, luxury shoppers can walk into LuxLexicon’s centrally located store to browse for bags directly or reserve an item online and try it at the store before purchasing.”

Carousell underwent a round of layoffs in December 2022, and moved into a new office space in 2023 amid a push for profitability.