Germany-based fast fashion e-commerce startup Lesara has raised €30 million in funding from 3L Capital, German newspaper Handelsblatt reported. Existing investors Mangrove Capital Partners and Vorwerk Ventures also participated in the round, which brings the total amount raised by the company to more than €90 million.
Lesara's main differentiator in the fashion retail market has been the speed of bringing new trends from the industry to the consumers. It takes the company just 10 days from getting the idea to having the new clothes available on its online platform, which makes it faster than some of the fast fashion pioneers like H&M or Primark.
The company, which operates in 24 countries, will spend money on further expansion, including launching a distribution centre in Erfurt in August that costs €45 million, according to Handelsblatt. In addition to that, Lesara will expand to one more European country later this year.
Lesara is yet to turn a profit: the company finished 2016 with a net loss of €14 million, up from €11 million the year before. As for the revenues, Handelsblatt has reported a discrepancy in the way the company presented its financials to different audiences. To the general public, Lesara reported a €150 million turnover in 2017, which has turned out to include returns; the number in investor presentations was reportedly much lower at €71 million.