About the Marketplace Business
Otrium is a Dutch startup app company that built an ecommerce marketplace for higher-end fashion brands to sell their end-of-season items at a discounted price to rid their storefronts of “old” inventory.
Founded in 2015, the business created this ecommerce marketplace as a way to still provide affordable prices to customers and provide more revenue for brands, but also as a way to combat the waste that results from brands not selling their inventory.
In 2018, Forbes reported luxury brands like Burberry destroyed $40 million worth of merchandise as a way to preserve the allure of the brand and make it more “exclusive.” Other brands admit or are accused of doing the same thing, including Nike, H&M, and Stefano Ricci. However, these brands have since made more environmentally sustainable efforts.
Otrium works with a variety of higher-end brands including, Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Guess, Steve Madden, Alexa Chung, and many more. The startup company makes an effort to work with brands that make sustainable efforts to reduce their environmental impact. Some of these brands have even received accreditation from global environmentally-conscious organizations, like PETA, the Business Social Compliance Initiative, Cradle to Cradle, and several others.
$120 Million in Funding
Today, Otrium announced that it raised $120 million in a Series C funding round, one year after the ecommerce business raised $26 million in a Series B financing round. This investment round for the marketplace app startup was led by BOND and Index Ventures, with participation from existing investor, Eight Roads Ventures.
This funding comes after a successful year for the ecommerce business. The press release reports that the startup tripled its revenues in 2020. Additionally, the company claims to have more than 3 million registered members and supports more than 300 fashion brands on its app.
Recently, the ecommerce app launched an advanced analytics tool that helps brands identify products with potential staying-power in the industry to remain available for purchase year after year.
Milan Daniels, CEO and co-founder of the marketplace startup company, said in the press release, “We believe that the fashion world will see a rebalancing in the next few years, with more sales being driven by iconic items that brands sell year after year, and will be less reliant on new seasonal launches. We work with brands to help them understand which of their items will stand the test of time, at what price and quantity.”
With the new funding, Otrium is looking to accelerate expansion into the United States (US), increase its staff, and continue developing its technology platform.
BOND General Partner Juliet de Baubigny added in the press release, “I look forward to partnering with the Otrium team as the company expands to the US, and believe the platform is well-positioned to bring dynamic and affordable solutions to the apparel market.”
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.