In an effort to earn at least one million euros ($1.09 million) from individual investors, the second-hand fashion marketplace Vestiaire Collective launched a crowdfunding campaign on Tuesday.

The Kering-backed company hopes to turn a profit by year's end and may even go public.

The crowdfunding is available to all European and UK residents over the age of 18, and Vestiaire Collective will promote it on its website and mobile app, according to CEO Maximilian Bittner.

Vestiaire is valued at 1.1 billion euros ($1.20 billion) based on the pricing of the crowdfunding, which is 1.78 euros ($1.94) per share. That aligns with a funding round that was spearheaded in November by Eurazeo, a private equity group that holds a 25% stake and is the company's largest stakeholder. The company was valued at 1.4 billion euros in the middle of 2022.

It was a fair valuation, according to Bittner, and it was representative of the current scenario. Globally, the luxury market is contracting as affluent and aspiring consumers cut back on their expenditures.

Nevertheless, a representative stated that sales on the Vestiaire platform increased by 25% last year due to the growing trend of consumers purchasing used clothing and accessories, which has prompted high-end designers and stores to open resale shops.

Vestiaire bills itself as a marketplace for "desirable" pre-owned apparel. The company receives a fee from consumers who sell things like Burberry trench coats or Gucci bags through the website. It has prohibited the sale of over 60 "fast fashion" labels, such as Boohoo, Gap, H&M, Shein, Uniqlo, and Zara, on the platform since November 2022.

An IPO "would be the natural next step after we reach profitability," a spokesperson for the Paris-based company, which was founded in 2009, stated in an email. The company plans to turn a profit by the end of 2024.