Fashion data exchange FashionCloud picks up €25 million

FashionCloud, a Hamburg-based B2B data and content exchange portal for fashion wholesalers and retailers, has raised €25 million of investment.

The round is led by the pan-European growth investor Verdane with further participation from FashionCloud's existing investors, including the Danish investor HEARTLAND.

Fashion wholesalers are responsible for delivering pre-made garments and fabrics to retailers.

Recent trends like just-in-time supply chains have poured pressure on wholesaler networks, which must maximise their ability to replenish retail stock efficiently to satisfy demand for new and popular garments.

According to Fashion Cloud the wholesale sector accounts for around 40% of Europe's €500 billion fashion market.

Fragmented, ineffective wholesale networks prevent the industry from realising its full potential, the startup says.

At the moment, more than 600 fashion brands provide marketing and product data through its smart stock replenishment platform, helping to harmonise ordering schedules and advertising bulletins.

Some 20,000 retailers have signed up to access stock from leading fashion brands like Hugo Boss, Scotch & Soda and Magasin du Nord.

Fashion Cloud is now looking to expand internationally in a bid to "seamlessly" unite fashion ecosystems globally, with the help of Verdane's scaling up expertise,

Alies ter Kuile, co-founder of Fashion Cloud, 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.

"With strong partners on our side, we will ensure the transformation of the fashion wholesale industry towards a more efficient and sustainable one.“

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."