German B2B tech solution provider Fashion Cloud has recently secured a substantial €25 million investment. Led by European growth equity investor Verdane, this investment will further fuel Fashion Cloud’s international expansion. Fashion Cloud offers a comprehensive software solution for the fashion wholesale industry, providing services such as content and data exchange, digital pre-and reorder, and other essential functions. Its platform is currently used by over 20,000 retailers and 600 brands, including well-known names like Hugo Boss, Zalando, Magasin du Nord, and Scotch & Soda. This impressive client base demonstrates the significant growth Fashion Cloud has experienced over the past three years.
With Verdane’s expertise in investing in tech-enabled businesses, Fashion Cloud aims to address industry-wide challenges related to data harmonization, content and data management, and transparency surrounding sustainability. The company’s vision includes enabling brands to share their sustainability attributes through its platform. Verdane’s deep understanding of B2B software and extensive international network will undoubtedly support Fashion Cloud’s continuing growth trajectory. Heartland, an existing investor, also participated in this funding round, affirming their confidence in the company.
Fashion Cloud was founded in 2015 with the goal of digitizing the fragmented and inefficient wholesale industry, which represents 40% of Europe’s €500 billion fashion market. The company is dedicated to developing smart software solutions that streamline processes for brands and retailers. Co-founder Alies ter Kuile spoke on the importance of seamless collaboration between stakeholders and expressed enthusiasm for the opportunities this investment will bring.
Björn Beckman, Principal at Verdane, emphasized the value that Fashion Cloud brings to fashion brands and retailers in terms of time, cost, and resource savings. The company’s impressive growth and customer retention indicate the widespread adoption of its solution by thousands of businesses. By facilitating the digitalization of fashion wholesale, Fashion Cloud contributes to the industry’s economic and environmental sustainability while fostering efficient collaboration and trade.
Useful links:
1. Fashion Cloud
2. Verdane
