The online fashion business has raised an incredible amount of money to develop their brand and intimidate competitors.
Following one of its competitor’s (Farfetch) announcement about raising $86 million in March, Lyst, a fashion e-commerce startup hailing from London has managed to gather itself a large sum of funding.
The fashion website, also with a branch in New York, allows users to create a customized shopping feed of products with over 11,500 different online stores available with a single check-out. Announcing its big news recently, it appears the 5-year old startup has fetched $40 million in funding.
With this investment, Lyst’s fortunes increases to a whopping $60 million since being founded in 2010. The money-soaked investors involved in this round of ‘good deed’ are strategic sponsors Groupe Arnault (majority owners of LVMH), Lyst’s former investors Accel Partners, Balderton Capital, DFJ, 14W and a mysterious New York hedge fund.
Lyst is amongst numerous online fashion stores aiming to be an online shopping mall for fashion. As competition increases in the online fashion industry, the startups’ new funding provides the opportunity for them to expand globally whilst sending out a no fear message to their competitors.
According to TechCrunch, Lyst co-founder and CEO, Chris Morton claims they’ve never revealed valuation of their company. “I don’t think it’s healthy for my team to obsess over. I recognise the industry is all about chasing status these days but we don’t want to be part of that conversation.”
The online shop makes shopping experience a bit less stressful for easily frustrated shoppers. With a universal shopping cart it allows customers to shop across different designers and shops, but pay all at once. Lyst is also aiming to revolutionise the online buying experience by ‘curating clothes and accessories based on trends or seasonal events such as “Denim for Spring,” according to Fortune.com.
Fashion e-commerce has become widespread in the past 5 years or so. Major players, Net-A-Porter are currently the biggest competition in the game. Lyst face a huge competition and task in their aims to become the top player in the industry, especially has Net-A-Porter recently merged with Italian retailer Yoox.
Similarly, a fellow online retailer looking to establish a name in the online fashion industry is Amazon. Expanding beyond household, books and entertainment, Amazon announced its introduction into the industry a few years ago in aim to expand beyond their horizon.
Speaking to Fortune.com, Morton says Lyst will expand globally, while engaging audience on both platforms (mobile and web), and they intend to “build websites for individual countries.”