Member Article

London ecommerce tech startup raises €4.2 million investment

Ecommerce technology startup Fits.me has raised the first €4.2 million of a €7 million ‘top-up’ investment from its existing management team, according to startups.co.uk.

Fits.me, founded in 2010, allows retailers to create virtual ‘fitting rooms’, giving users the chance to virtually try on clothes.

The tech startup, which has grown to 60 staff across its London headquarters and three additional sites in Estonia, has several international clients including Hugo Boss, Thomas Pink and QVC,

The €4.2 million 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.

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.”

This was posted in Bdaily's Members' News section by Ellen Forster .