Amsterdam-based fashion e-commerce startup Otrium has raised $120M (approx €102.27M) in a Series C round of funding. In addition, the company has also announced its launch in the US and aims at reducing unsold fashion in the future.
Investors and the use of new funds
The current round was co-led by BOND and Index Ventures. The round also saw participation from existing investor Eight Roads Ventures. With this development, Juliet de Baubigny, a general partner at BOND, will join Otrium’s board of directors.
The raised capital will enable Otrium to accelerate its US expansion, develop its technology platform, and increase headcounts.
To sell end-of-season clothes
Founded by Max Klijnstra and Milan Daniels in 2015, Otrium is a technology platform via which fashion brands can sell their leftover stocks at a discount. According to Otrium, about 12 per cent of clothing produced stays unsold. And this is where the company aims to make a difference.
Otrium’s full-service marketplace allows fashion brands to open an online outlet with minimal effort and all the advantages. Through their platform, fashion houses can sell both outlet collections and previous collections while retaining full control over pricing, merchandising, and visibility of their excess inventory.
Otrium arranges the storage, sale, and shipment of the relevant collections. Fashion brands can simply select their available stock, and Otrium takes care of the rest.
Milan Daniels, CEO & co-founder of Otrium, says, “Our goal is to get as close as possible to eradicating unsold seasonal inventory. Firstly, we help fashion brands find homes for clothing items that would otherwise remain unsold and maximise the revenue they generate on those items. Secondly, we leverage our in-depth analytics to help brands determine which clothing and at what quantities and price will sell the most in the future.”
Otrium has revealed that its revenues tripled in 2020. In addition to that, its registered members surpassed 3 million, and the company now has over 300 fashion stores on its app. Some of its partners include Karl Lagerfeld, Joseph, Anine Bing, Belstaff, Reiss, and ASICS.
Recently, the company rolled out expanded analytics functionality, which helps fashion houses analyse past demand to determine which items have staying power, potentially becoming iconic items for brands.
“We believe that the fashion world will see a rebalancing in the next few years, with more sales being driven by iconic items that brands sell year after year, and will be less reliant on new seasonal launches. We work with brands to help them understand which of their items will stand the test of time, at what price and quantity,” says Milan Daniels.
The company last raised funding in May of 2020. It secured €24M in its Series B round of funding led by Eight Roads Ventures. Existing investors Index Ventures and Hans Veldhuizen had also participated in that round.