Croissant, a Nashville-based fintech company focused on luxury resale guarantees, has secured $28 million in new funding to expand its platform that promises shoppers guaranteed buyback values on high-end fashion purchases. The company, which emerged from stealth mode in 2023 with $24 million in seed funding, is now introducing new features including instant cashback rewards and prepayment options for retail partners. According to CEO and cofounder John Howard, the latest round includes both equity and debt financing from existing backers including Portage, KKR cofounders George Roberts and Henry Kravis.
The new capital will fuel Croissant’s enhanced business model that aims to create what Howard describes as a “flywheel” connecting consumers, luxury retailers, and the secondhand market. The platform currently works with 80 participating retailers and brands, including Mytheresa, Bloomingdale’s, Veronica Beard, and Isabel Marant.
How the Luxury Resale Guarantee Platform Works
Croissant operates as a Chrome browser extension that displays guaranteed future resale values for luxury items at the point of purchase. When shoppers view a product, the platform calculates a buyback price typically ranging from 30 to 40 percent of the manufacturer’s suggested retail price. For example, jeans priced at $300 would carry a guaranteed future buyback value of up to $120, according to the company.
The concept emerged in late 2021 while Howard worked at private equity firm KKR. He told reporters he wanted to counter the buy-now-pay-later trend by focusing on the asset side of consumer balance sheets rather than increasing debt loads. The CEO said the goal was to “empower people to buy better things and think about their stuff as value-retaining assets.”
New Features Target Instant Gratification
While Croissant attracted what Howard described as “hardcore” users with its original model, the company discovered the delayed gratification of future resale values wasn’t compelling enough for mainstream shoppers. In response, the platform is now offering immediate rewards through a 10 percent cashback program on all purchases made within its retail network.
Additionally, Croissant is introducing a prepayment system for retail partners. The company will pay brands upfront for anticipated future purchases from Croissant users, taking a discount in exchange for providing immediate, non-restrictive capital. Howard explained that if users are expected to spend $100,000 over three months, Croissant might offer retailers $70,000 immediately rather than $80,000 over time.
Ambitious Growth Targets for Luxury Resale Platform
The fintech company plans to allocate between $7.5 million and $8 million toward marketing initiatives throughout this year. These investments aim to grow the user base significantly, with targets of 1.5 million registered users and 130,000 active shoppers by year-end, the CEO stated.
Howard projects the platform will generate at least $250 million in gross merchandise value for brand partners by December. Meanwhile, when shoppers eventually sell items back to Croissant, they receive credits usable within the platform’s retail network, creating a closed-loop ecosystem. The company then resells these secondhand goods through platforms like Poshmark or its dedicated shop.
In contrast to typical fintech models focused on consumer credit, Croissant positions itself around quality over quantity. Howard emphasized that life improves when consumers invest in higher-quality items that retain value over time, a philosophy reflected in the brands the platform chooses to partner with.
The company expects to reach profitability by the end of this year, according to Howard. However, the CEO has not disclosed specific timelines for expanding beyond the current 80 retail partners or entering international markets.
