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Otrium plots path to profitability in 2025

Otrium to focus on European market amidst 40% revenue growth in 2023 to date.

28 DECEMBER 2023
  • Otrium to focus on European market amidst 40% revenue growth in 2023 to date
  • Targets Q4 2024 break-even with full-year profitability in 2025
  • Company to transition US business to Rue Gilt Groupe
  • Additional €16.6 million equity investment from existing investors
  • European Otrium business with first break-even month in November 2023
Otrium announces its plan to sharpen its focus on the European market and targets profitability for the fourth quarter 2024, with full-year profitability in 2025. Otrium will accelerate its path to profitability by transitioning its US business through a strategic arrangement to Rue Gilt Groupe, the leading premium and luxury off-price e-commerce company in the US.
To further its mission of helping to ensure that all clothing produced is worn - thereby supporting fashion brands to recover value and minimize waste - Otrium has secured an additional €16.6 million in equity investment from existing investors. The recent funding was co-led by Index Ventures, BOND Capital, and Eight Roads, who also led the company’s Series C funding round.
Milan Daniëls, co-founder of Otrium, states: “This year has been very promising: we have seen significant growth in Europe and achieved our first break-even month in November. This progress strengthens our path to profitability. The renewed commitment from our investors demonstrates their confidence and positions us strongly for the upcoming years.”
Otrium’s growth in European markets in 2023 follows a financial year 2022 marked by macroeconomic uncertainty and inflation, alongside a consumer shift back to brick-and-mortar retail post-pandemic. In 2023, Otrium achieved a significant 40% year-on-year revenue growth in the EU.
A key contributor to Otrium’s ongoing performance improvement has been significant investments in technology and logistics. Notably, the company introduced an advanced made-to-measure packaging machine, impacting cost efficiency and reducing CO2 emissions by over 50% per item shipped, and made significant improvements to its consumer-facing product, offering a scalable and more personalized mobile-first experience. These investments have been made predominantly over the course of 2022.
To execute on its new strategy, the company appoints its current CFO, Frank van Valderen, as its new CEO, effective January 1, 2024. He will succeed Zuhairah Washington, who closes her tenure with full support after successfully overseeing the growth and transition of the US business to Rue Gilt Groupe. Van Valderen brings extensive experience from his previous leadership roles at Zalando and Philips, and his recent position as CFO at Dutch e-commerce retailer Wehkamp.
The company remains focused on its goal to expand its market share in Europe, redefining how consumers perceive and shop for end-of-season and archived fashion. Otrium’s ambition for profitable growth is connected with its commitment to promoting practices and opportunities to help minimize fashion waste.
For more information, please visit or contact [email protected]
Otrium's state-of-the-art 25,000 m² logistics hub in Almelo, The Netherlands, 2023

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Otrium introduces made-to-measure packaging

Fashion's carbon footprint isn't a small thing. The fashion industry produces 5% of the world’s carbon emissions and is the world’s 3rd largest polluter. We're part of that, but we're striving to change that story. Here's what we're up to:In 2023, we introduced a new packaging machine in our European warehouse to create tailor-made packaging. The new packaging machine scans items to determine their size and creates a unique fitted packaging, limiting any unnecessary space. We moved away from one-sized boxes to minimise material usage. Reducing our operational footprint: one package at a time Our new packaging machine is making a real difference—cutting emissions by over 50% per item shipped. To be exact 51.88%, the equivalent of 0.075 kg CO2-eq. It's a small win, but a win nonetheless. Reducing our operational footprint means innovating one step at a time. We move as smart and quick as possible as we are conscious of the urgency of climate change. Using Less, Using Smart It's really just about using energy and materials smarter.This is our three-step approach:undefinedundefinedundefined
Outlet fashion platform Otrium measures avoided carbon emissions and waste with carbon-calculating software VaayuExperience the report at undefinedOtrium, a purpose-driven fashion outlet platform, publishes a comprehensive analysis of the avoided carbon emissions and waste of modern off-price business models with the support of Vaayu, the climate tech start-up. Vaayu used its  proprietary AI and machine learning technology, alongside its team of in-house Life Cycle Assessment  experts, to gather  insights from over 45 fashion brands (both available on and off Otrium) and data from almost five million fashion products live on Otrium to calculate carbon at a granular science-based level. The research explores the broader role that modern outlet business models like Otrium can play in contributing to a more circular fashion industry by providing an alternative to waste streams for unsold stock. It represents a new contribution to understanding the end-of-life phase of fashion products as one of the largest data sets on unsold stock practices. In 2022, based on these calculations, Otrium prevented 6,496 tonnes of carbon emissions (CO₂e) and 104 tonnes of waste by providing fashion brands with a profitable solution to clear unsold inventory, compared to an alternative scenario in which off-price businesses like Otrium do not exist. That’s the equivalent of 2,219 round-trip flights between Amsterdam to NYC for one passenger (undefined) or throwing away 130,524 pairs of jeans (Vaayu database, undefined).Otrium partners with over 400 fashion brands like Mara Hoffman, Everlane, Outerknown and CLOSED to reach new consumers for every item of clothing produced and extend the life of their collections. Now, with the help of  Vaayu, Otrium has access to live carbon tracking at a product and brand level, enabling the business to monitor across transactions and use this data to drive real-time decision-making around impact. Envisioning a future where all clothing produced is worn, and no new clothing ends up in landfills, Otrium aims to empower its brand partners to take a more demand-focused approach to production and innovative ways to reach new consumers. Through data-sharing and customer insights, Otrium encourages more accurate forecasting. To support its five million members globally in making informed choices outside trend and seasonal models, Otrium is working with sustainable and ethical brand rating organisation, Good On You, which benchmarks the brands on Otrium based on their social and environmental impact. Otrium also revalues damaged items like returns, repairs them and feeds them back into the cycle.Says Co-Founder, Max Klijnstra, “We founded Otrium to play a part in reshaping how fashion is produced and ultimately sold. Our business model is a first step in solving the growing challenge of unsold inventory. As a next step, the results from our Otrium 2022 Impact Report  will inform and strengthen our sustainability strategy and climate targets. We will also use it to transparently communicate our progress with our community, brand partners and the fashion industry. At Otrium, we will be working steadily towards improving our impact one step at a time.” Says Marlot Kiveron, Head of Sustainability at Otrium, “Our ultimate goal is to have a net positive impact. This means giving back more than we take through our business model, and operations. Creating impact is constant. The goal of this report is to measure our progress and to stay accountable by sharing this externally. Understanding the impact of both our business model as well as our operations in real-time, helps us to accelerate positive change.”Says Namrata Sandhu,  Co-Founder and CEO of Vaayu, “We’re at an inflection point when it comes to the climate and new research shows that we’re currently not on track to keep global warming below 1.5C. Retailers have long been transitioning reactively; thinking about systems change and circularity, and wanting to truly understand and lower their impact. But Vaayu actually enables them to work proactively, by harnessing our generative AI and machine learning technology to calculate emissions in real-time, and then lowering them using these science-backed insights. Our work with Otrium is the first of its kind to investigate the carbon emission and waste saving potential of off-price business models.”To explore Otrium’s interactive 2022 Impact Report please click undefined.
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