Tech firm Fashion Cloud gets €25 million investment to speed up expansion
European B2B tech solution Fashion Cloud has announced a €25 million investment in the business led by European specialist growth equity investor Verdane.
The company offers an “all-in-one software solution for content and data exchange, as well as digital pre-and reorder, in the fashion wholesale industry”.
In the last three years, it has seen accelerating growth and now more than 20,000 retailers and 600 brands are using its platform. They include Zalando, Magasin du Nord, Hugo Boss and Scotch & Soda.
The company will now be able to accelerate its international expansion further and said that “Verdane has a strong record of investing in tech-enabled businesses, which will enable Fashion Cloud to help solve industry-wide issues such as data harmonisation, content and data management, as well as help the company prioritise transparency around sustainability, by enabling brands to share their sustainability attributes via the Fashion Cloud platform”.
It added that its new investor’s “deep expertise in the B2B software business along with its large international network and its team of in-house specialists will support Fashion Cloud on its growth trajectory”.
Alongside Verdane, existing investors including Heartland participated in the funding round.
Fashion Cloud was founded in 2015 with the aim of creating smart software solutions to help brands and retailers digitise the “fragmented and inefficient” wholesale industry than makes up 40% of Europe’s €500 billion fashion market.
Co-founder Alies ter Kuile said: “Brands and retailers want to be able to work together more easily and effectively. This investment enables Fashion Cloud to take the collaboration between stakeholders to the next level.”
And Björn Beckman, Principal at Verdane, added: “Fashion Cloud helps fashion brands and retailers to save time, money and resources. Their impressive growth and customer retention demonstrates just how well-loved the solution is by thousands of businesses. Digitalisation of fashion wholesale is crucial for efficient collaboration and trade, and ultimately to make the industry more economically and environmentally sustainable.”
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