‘Virtual fitting room’ provider Fits.me raises €4.2m
Management buy-in brings total investment to around €13m
A start-up which specialises in e-commerce technology allowing retailers to create virtual ‘fitting rooms’ has raised the first €4.2m of a €7m ‘top-up’ investment from its existing management team.
Fits.me, founded in 2010, claims to be the world’s leading provider of virtual ‘fitting room’ solutions for its clients, which allow users to virtually try on clothes by uploading a photo of themselves and entering a few basic measurements.
With clients including Hugo Boss, Thomas Pink and QVC, the tech start-up has grown to 60 staff across its London headquarters and three additional sites in Estonia.
The €4.2m management buy-in comes from new chief executive and original investor James B. Gambrell, alongside other existing backers including The Entrepreneurs Fund, Smartcap, and several individual angel investors and shareholders.
It is the latest high-profile investment into a virtual fitting room company, following a $12m investment this week into London competitor Metail by Hong Kong-based fashion company TAL Apparel.
Fits.me said the growth of the sector was a response to widespread consumer frustration with fashion e-commerce; a report it commissioned found that 45% of regular online shoppers found the “inability to try on the garment to check the fit” the most disappointing aspect of shopping online.
Investor James Gambrell was announced as CEO of Fits.me in June, having established a lengthy pedigree in joining tech companies “post-Founder” and growing them into successful enterprises. Most recently, he joined engineering software company Atego as CEO, helping to grow the company into a sector leader before its sale to PTC for $50m.
Commenting on the investment, Gambrell said: “We’re at an exciting inflection point for the industry. Several start-ups have created working solutions and attracted brand-name, paying clients.
“But only a select few have been able to deliver the value that commands fee levels that justify the working capital and investment necessary to scale their business on a global scale.
“Those that can, including Fits.me, have successfully attracted new investment. Those that can’t may be unable to attract sufficient capital to grow and will start to vanish as they fail to secure further funding. We expect some consolidation in this highly fragmented sector, and we will seek to take advantage of that.”