The coronavirus pandemic has been a boon to technology-driven fit company 3DLook, which just raised its second fundraising round in a year.
Led by Almaz Capital, a venture fund focused on software companies, 3DLook’s new Series A round came in at $6.5 million, after raising a quick pre-Series A round of $1 million in July, with investors like supermodel Natalia Vodianova. Although Vadim Rogovskiy, cofounder and chief executive officer, said last year he was looking to raise something like $10 million in this round, he chose a smaller, quicker round now, with plans for a larger Series B for 2022.
“We see huge potential to show how technology can truly transform business as we expand into a wide range of industries focused on personalization,” Rogovskiy said.
While 3DLook is working mainly in the apparel space, with its anonymized body-scanning technology already being used in more than 260 Tailored Brands stores and an upcoming deal with VF Corp.-owned Dickies in China, Rogovskiy is looking to expand into custom furniture and automotive seating, gaming and health and fitness. But it will also remain in the fashion space, with plans for a fit “passport” that would help people shop with their “body data” from any brand.
“As we continue to invest in top talent on a global level, this round gives us the runway for the next 18 months or so,” Rogovskiy said.
Fall 2021 Trend: Knitwear
The company has grown in size by almost sixfold since April of last year, has surpassed $1 million in annual revenue and now counts about 80 employees. It intends to expand operations in Western Europe and in the U.S. While Rogovskiy has been based in Ukraine during the pandemic, he intends to move back to New York once he can to run the business there.
Pasha Bogdanov, general partner at Almaz, said the COVID-19 pandemic is “the most disruptive event in the last decade to impact retail” and current pandemic-related concerns around in-person shopping and trying on clothes “will linger.” This, in turn, is driving “the willingness to try fit tech, while the ease of use and performance guarantee lasting adoption,” he said.
As for raising a full round in a pandemic, Rogovskiy noted having meetings be video-only “brought efficiency” to the process overall and he was able to close the round in five months. And interest in the company has increased during the pandemic, but so far Rogovskiy has declined acquisition offers and is thinking in terms of growing independently into a company that is used by hundreds of millions of consumers.
“We aim to fundamentally change the way people shop or solve everyday tasks and unlock a completely new level of personalization, efficiency, and more engaging consumer experiences,” he said. But should the right suitor come along, one with resources enough to speed up growth, Rogovskiy said, “we might consider” an acquisition or partnership with another company.
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