Denmark’s Hakio bags €4M to help fashion industry be less wasteful and more efficient using AI

Aarhus-based Hakio, a Danish AI-powered demand forecasting platform, announced that it has secured €4M in a seed round of funding to further accelerate the development of its platform. 

Hakio’s technology employs machine learning to improve forecasting in the fashion industry, addressing global waste concerns.

The investment was co-led by People Ventures and Dreamcraft Ventures. The round also includes participation from existing investors Blazar Capital and Founderment. 

The funds will support the expansion of the platform to new European markets, in addition to hiring data scientists and developers for further platform development.

Demand forecasting for fashion brands

Founded in 2021 by Malte Bjerg Vittrup and Simon Kristensen, Hakio uses AI-driven demand forecasts in the fashion industry to optimise inventory management, reducing waste and improving overall efficiency.

The technology is on a mission to align production with actual demand, minimising excess stock and contributing to a more sustainable and streamlined supply chain.

Hakio aims to tackle the annual retail losses, estimated at €1T or more, attributed to inadequate planning. It empowers retailers to optimise stock levels, reducing overproduction, lost sales, and operational inefficiencies. This approach eliminates manual, non-value-adding work in the planning process.

Co-founder Bjerg Vittrup says, “By removing bias when creating a baseline forecast and subsequently including expert knowledge in a sleek and user-friendly platform, fashion brands can increase planning accuracy and reduce operational costs and working capital. This means companies can free up funds to use elsewhere.”

The company uses machine learning algorithms analysing 150 data variables, including customer behavior and macroeconomic trends, to provide actionable insights and demand forecasts for optimised decision-making in the fashion industry.

Industry spends €800M on planning

Co-developed with clients like Jack & Jones and Only, Hakio’s platform aims to transform the apparel sector, addressing the €800M spent annually on planning and overproduction. 

With a team of 20, the Danish company plans to more than double the team size to amplify its impact and reach a wider customer base.

Co-founder Bjerg Vittrup says, “At Hakio, we are driven by a commitment to reduce waste and cut losses due to bad forecasting.”

“Already, we help brands reduce costs and improve profits, but now, thanks to our new investors, we have the resources and knowledge to further develop and scale Hakio to the next level, and we can’t wait to get going.”