Amsterdam-based Otrium, an online fashion marketplace that aims to move unsold clothing at the end of the season, has raised €24 million in Series B funding to fuel further international expansion. The round was led by Eight Roads Ventures, with existing investors Index Ventures and Hans Veldhuizen participating as well.
The e-commerce platform allows brands to manage their excess inventory (pricing, merchandising, visibility) with the help of analytics and a dynamic pricing engine, and then markets the clothing to 1 million registered shoppers. Brands range from up-and-coming designers to household names, including Asics, Puma, Vans, Pepe Jeans and Scotch & Soda.
“We’re committed to helping our partners get the most value out of their last season’s collections, and we realise that this need has never been greater,” says CEO and co-founder Milan Daniels.
With the disruption of COVID-19, McKinsey reports the value of excess inventory from spring/summer 2020 collections is estimated at €140 billion to €160 billion worldwide — between €45 billion and €60 billion in Europe alone. In a press release, Otrium says interest from brands has doubled, and revenues have grown 40 percent in the past month alone.
Daniels and Max Klijnstra founded the company in 2016 with a mission “to extend the life-cycle of fashion”, zeroing in on consumer trends toward sustainability. Last year the startup closed a €7 million Series A led by Index Ventures. Already active in France, Germany and its home country, the Dutch startup is launching in the UK and “focused on onboarding an unprecedented pipeline of brands,” according to Daniels.
Photo: Co-founders Max Klijnstra and Milan Daniels