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Local Luxury Reseller Ranked #43 Among Africa’s Fastest-Growing Companies

The Financial Times’ annual ranking of Africa’s Fastest Growing Companies has listed Luxity as the speediest-scaling e-commerce player in South Africa for the second year running. This achievement is further underscored by the pre-owned luxury reseller’s strong showing within the broader African landscape, securing the 43rd position among all companies on the continent.

The company’s positioning was based on an absolute growth rate of 297.61%, compounding annually by 58.42%. Luxity’s staff complement also increased by 169%. Additionally, even though the luxury sectors’ market growth has softened overall, Luxity has continued to report double-digit growth at multiples higher than the industry average.

“South Africa’s economic climate has been a challenge since we started the business in 2016,” says Michael Zahariev, co-founder of Luxity. “But this accolade proves that despite this, young businesses in the country can still thrive. We believe this ranking serves as a ray of hope for other entrepreneurs, showing that growth is possible even in the face of adversity.”

As for how the company has managed to sustain its momentum as one of the fastest-growing businesses on the continent year-on-year, he attributes this to its investment in technology and innovation. “We were the first omnichannel retailer in South Africa and are now one of the first to leverage cutting edge technologies like AI to better service our customers and do so in a sustainable, highly profitable manner.”

Zahariev adds that Luxity hasn’t sacrificed growth for efficiency, a common pitfall for businesses. “Our inclusion on this ranking once again, alongside our ability to operate with the efficiency of leading global brands, showcases our commitment to achieving both growth and operational excellence.”

To him, one of the greatest testaments to the company’s growth has been the change in consumer perception of the pre-owned luxury market. “We have seen a shift away from the stigma that once surrounded the sector. Today, pre-owned luxury is embraced for its sustainability and affordability, promoting more conscious consumption with positive knock-on effects for the environment.”

Regarding the business’ repeat ranking as the most rapidly expanding e-commerce company in South Africa, Zahariev highlights a key driver: “We’ve been able to bridge the gap in access to previously unavailable goods. This resonates strongly as South Africa’s e-commerce industry is poised for further growth. With Rand Merchant Bank expecting e-commerce penetration to reach developed market levels by 2026 and stating that there is significant runway for development of the digital landscape across Africa, online is the way to go for businesses looking to expand on the continent.”

When it comes to his outlook, Zahariev envisions a future where the pre-owned luxury goods market will mirror that of the pre-owned car market in South Africa, with pre-owned cars vastly outselling new ones. “Currently, pre-owned luxury makes up less than 2% of the market, but I anticipate enormous growth potential with one in 10 luxury items sold in Africa being pre-owned by 2027.”

He concludes by saying, “We believe that our technology-first approach and ability to see opportunities where other businesses might see risks will enable us to maintain our growth and positioning as one of Africa’s fastest growing companies.”

About Luxity

Established in 2016, Luxity is South Africa’s first omnichannel boutique focused on buying and selling pre-owned, authentic luxury goods to consumers throughout the country. The Luxity online and physical stores in Nelson Mandela Square, the V&A Waterfront, Gateway Theatre of Shopping and Menlyn Maine provide local access to some of the world’s most coveted brands including Louis Vuitton, Rolex, Hermes, Chanel and Gucci. For more information, go to https://luxity.co.za