Software firm Fits.me has netted £5 million through its Series A funding round so that it can develop its virtual fitting room services.
SmartCap has been joined by Conor Venture Partners, Fostergate and The Entrepreneur’s Fund as backers of Fits.me.
London-based Fits.me develops, markets and operates virtual fitting room services on a software-as-a-services basis for online clothing retailers.
The business has clients including Adidas, Hugo Boss, L.K.Bennett and Superdry and will use the new funding to finance sales and marketing programmes, expansion into France, Germany, other EU countries and the US as well as scaling up its current operations.
Fits.me has, previously, secured seed and early-stage investment to the tune of £1.75 million from SmartCap and angel investors, as well as £500,000 worth of grants.
Heikki Haldre, co-founder and chief executive of Fits.me, comments, ‘We are in a market that has started to move very quickly as retailers look to overcome their high street difficulties by focusing online performance.
‘It should be clear to everyone that we mean to do very good business by helping online clothing retailers to solve one of their most pressing problems.’
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Fits.me says that its virtual fitting room services help boost revenues and the profitability online clothing retailers by allowing the companies to overcome the online fit problem in a market where, in 2012, the overall proportion of garment sales from online channels was 14-15 per cent.
Manu Makela, founding partner at Conor Venture Partners, adds, ‘While large swathes of retiling already takes place online, there are sectors for which the real online growth has yet to come.
‘Apparel is chief among those sectors, primarily because buying clothes is such a subjective process – most obviously when it comes to “fit”. Fits.me has a sophisticated solution that works, delivers provable results, is easy for retailers to deploy and has been signed up by a growing band of respected retails and brands, on an international basis.’