The European company taking on Facebook Marketplace in South Africa
Estonia-based Yaga has steadily expanded its presence in South Africa, competing with Facebook Marketplace and Gumtree.
Yaga offers secure and accessible payment and shipping options, with a primary draw being the built-in shipping options, including Pudo, Paxi, PostNet-to-PostNet, and Aramex.
While there are no selling fees, buyers will pay an additional ‘buyer protection fee,’ which offers refunds for misrepresented items and fraud protection through an escrow system.
An escrow is a contractual arrangement in which a third party receives and disburses money or goods on behalf of the transacting parties. Disbursement is contingent upon the conditions agreed upon by the parties.
The platform’s products are typically 50% to 80% cheaper than buying the same products new. The localised logistics also protect buyers and sellers, with fraudsters plentiful in South Africa.
The company was founded by Aune Aunapuu in Estonia, coming up with the idea for Yaga after working as an environmental consultant.
Speaking with our sister publication MyBroadband, Aunapuu said that she founded Yaga while on maternity leave.
Looking to sell a baby stroller, she noticed that all second-hand marketplaces lacked payment and shipping options.
Yaga was thus born, which allows users to build their own storefronts. The platform also looks to reduce fashion waste.
It is, however, not isolated to fashion, with other products, including second-hand tech, also sold across storefronts.
While Estonia and South Africa may seem far apart, Yaga’s decision to establish a presence in South Africa made sense for its founders.
With Estonia having a population of only 1 million, Yaga began searching for other markets, as the capital required to start the company would be wasted on a market that small.
Due to this, the Yaga team looked globally for a larger market, which took into account Internet penetration, perception of second-hand goods, and population.
Africa was high on the list, given that it is in the same time zone as Estonia. South Africa was elected due to its large English-speaking population and its history as a gateway to the continent of Africa.
While travelling across South Africa, Aunapuu noted a high number of thrift stores and thrift markets, believing that sellers also need an app to sell goods.
The COVID-19 pandemic also provided a boost for the company, despite its launch in South Africa only in January 2020.
With all essential services shut down, South Africans were forced online. The company then began to see an increase in transactions, and influencers started expanding the platform’s reach.
Millions in funding
Given the success in South Africa, Yaga announced its plan to expand across Africa in 2024, with expansions planned for Kenya and Nigeria.
The company also received a boost after raising €4 million (about R80 million) in a pre-Series A global funding round in late 2025. This took the company’s funding to €7.2 million (R135 million) since its founding.
The company secured the latest funding from Specialist VC, Trind Ventures, Startup Wise Guys, a group of angel investors and H&M Group Ventures, which is a unit of the Swedish retail giant.
“We strongly believe in the team behind Yaga, which has clearly shown capabilities to scale its marketplace for pre-loved fashion,” says Nanna Andersen from the H&M Group.
“Their presence on the African continent is also a strong complement to H&M Group’s existing second-hand initiatives in other parts of the world.”
Yaga plans to become the largest marketplace for second-hand fashion in Africa and the Middle East.
Yaga said that it has 2 million users, with over 6 million items sold since its launch in 2017. Sellers have earned over €80 million (R1.5 billion) on the platform, according to its website.
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