It has never been easier to buy clothes online, but the ever-growing number of online shops only brought along new problems: where to buy is today’s key challenge. The Hamburg startup StyleLounge thus introduced a metasearch engine for clothing and lifestyle products, which obviously met the needs. Now, the Hamburg fashion startup nabbed 2.3 million euro in a series A round of funding.
100 Partner Shops, 1 Million Products
Backing comes from TA Ventures, Axivate Capital, ASTUTIA Ventures, a number of family offices and Felix Jahn, founder of Home24 and former managing director of Rocket Internet, who StyleLounge also counts as a co-founder. In an interview mit Hamburg Startups, the co-founder and managing director of StyleLounge, Johannes Heinen, explained the success of the financing round only one year after the company’s formation. According to Heinen, the scalability of the business model and the delimitation of competition played an important role.
On its platform, StyleLounge claims to offer more than one million products from 100 partner shops which pay the Hamburg startup for the price comparison service and the new clients they win through the service. Unlike competing portal, Style Lounge allows not only to compare individual products, but also to check availability.
Next Financing Round in View
The platform is operated by SNM Style Net Media GmbH headquartered in Hamburg. According to Heinen, StyleLounge entered the online fashion market right on time, with numerous shops being set up professionally, but hardly comparable by consumers. The hug success enjoyed by StyleLounge is thus reflecting the consumers’ wish for transparency, while also confirming the high quality of the partner shops. Last but not least, also Style Lounge’s technological quality was a reason for the investment.
With the fresh funds of 2.3 million euro, the platform’s technology will be further advanced. Also, new structures in marketing and business development will have to be set up, with the expansion to other markets being imminent. Since June, Style Lounge has also been active in France and the Netherlands. By the end of 2015, other countries are to be added, too.