FashionCloud, a Hamburg-based B2B data and content exchange portal for fashion wholesalers and retailers, has raised €25 million in 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 maximize their ability to replenish retail stock efficiently to satisfy the 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 realizing 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 harmonize 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.