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Otrium Raises $120M and Partners with Hundreds of Fashion Brands

Clothing brands partner with Otrium to find a home for every unsold item, and leverage its tech platform to unlock the commercial potential of end-of-season fashion

9 SEPTEMBER 2021
Clothing brands partner with Otrium to find a home for every unsold item, and leverage its tech platform to unlock the commercial potential of end-of-season fashion
Amsterdam, March 31, 2021 - Otrium, the end-to-end marketplace for end-of-season fashion, has announced $120 million Series C funding, its US launch and the introduction of new capabilities aimed at reducing unsold fashion in the future. Otrium has also revealed that revenues have tripled in 2020, Otrium’s registered members surpassed 3 million, and it now has over 300 fashion stores on its app. Among its partners are Karl Lagerfeld, Joseph, Anine Bing, Belstaff, Reiss and ASICS.
The $120m round was co-led by BOND and Index Ventures. Juliet de Baubigny, a general partner at BOND, will join Otrium’s board of directors. The round also had continued participation from Eight Roads Ventures. The newly raised capital will accelerate US expansion, the development of Otrium’s technology platform, and support hiring.
Otrium is working with the fashion industry to ensure that every item of clothing is worn, helping to find a buyer for every piece already produced, and providing the tools brands need to develop lines that they can have confidence will sell. When selling end-of-season collections on Otrium, fashion houses retain full control over pricing, merchandising, and visibility of their excess inventory. Around, 12% of clothing produced stays unsold.
“Our goal is to get as close as possible to eradicating unsold seasonal inventory. Firstly, we help fashion brands find homes for clothing items that would otherwise remain unsold and maximise the revenue they generate on those items. Secondly, we leverage our in-depth analytics to help brands determine which clothing and at what quantities and price will sell the most in the future,” commented Milan Daniels, CEO and co-founder of Otrium.
Otrium recently rolled out expanded analytics functionality which helps fashion houses analyse past demand to determine which items have staying power, potentially becoming iconic items for brands. “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,” Daniels added.
“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,” said Juliet de Baubigny, a general partner at BOND.
“The notion of brands producing fewer new items and focusing more on what their customers love and buy over and over again, is powerful,” said Danny Rimer, Index Ventures General Partner and board member of Otrium. “It’s not an entirely new strategy in the fashion industry, but one that was limited to a few items and a small proportion of global fashion brands. With Otrium, every fashion label can begin to build their iconic portfolio.”

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Otrium Officially Launches Fashion Marketplace in the US

- Tech platform offers innovative solution to give brands of all sizes an online outlet, consumers an informed way to buy fashion and the industry a more sustainable future Otrium, the marketplace for end-of-season fashion, today announces its expansion into the US. Leveraging its proprietary technology, Otrium helps brands fix the costly economic and environmental challenges of excess inventory, while offering customers access to the best fashion brands at exceptional prices with premium service.  Otrium offers a seamless way for fashion brands to set up an outlet store online, levelling the playing field for brands previously unable to invest in physical outlets. Otrium’s purpose is to ensure that all clothing is worn. Currently, approximately 12% of clothing produced, or more than $200 billion, stays unsold sitting in warehouses. Through its proprietary technology, Otrium enables brands to easily set up their own store through its managed marketplace, giving brands full control over pricing, merchandising, visibility and placement. This means that brands can sell their excess inventory without fear of their brand being degraded by third-party retailers. Otrium’s technology has automated many of the processes for brands, making setting up an online store time efficient, giving brands back many of the people hours typically required to set up an online sales presence. By providing brands with a measurable alternative to stock buyers or sending unsold products to landfills, Otrium also supports its partner brands’ sustainability credentials.The business completed Series C funding of $120m to fuel its US expansion earlier this year  via BOND Capital, Index Ventures and Eight Roads. Kering Group is also an early stage investor. Otrium recently announced senior technology executive, Zuhairah Scott Washington, formerly with marketplace leaders Uber and Expedia Group, is leading this expansion as President.“Fashion is the world’s largest art form and the way many choose to express themselves  daily. Unfortunately, the industry has been trapped in a broken cycle of inefficiency, leaving brands with few viable ways to efficiently sell excess inventory in an economical and environmentally favorable way,” said Washington. “Otrium has developed a tech and data led approach that gives the industry greater control and insight over this inventory, and access to data which will eventually lead to a more sustainable way for fashion to be produced and sold.”Otrium’s proprietary analytics helps brands determine which of their clothing items will be the most popular sellers over time, based on past demand. Data-made fashion enables brands to reproduce their most wanted items, ultimately minimizing waste. “Our long term goal at Otrium is to help brands produce clothing that ends up being worn resulting in less overall waste. '' said Washington. "Otrium’s brand partners access our large audience of fashion-lovers using our platform. Our technology enables us to reach our members, in a discreet and highly targeted way – something that isn’t possible in the traditional outlet model."Otrium’s US marketplace launches with brands including Adam Lippes, Belstaff, Cynthia Rowley, Faherty and Reiss with many of the globally recognized brands on its European platform, which range from Karl Lagerfeld to Asics, coming soon. With over 70% of the world's clothing ending up in landfills, at any one time Otrium has hundreds of millions of dollars of stock on its platform globally with a significant proportion selling within weeks, avoiding resellers, stock buyers and ultimately landfills. This helps Otrium's global brand partners maximize margins and saves its members an average of 67% off (and up to 75%) the original price.Otrium was founded by Milan Daniels and Max Klijnstra, who are childhood friends and first collaborated on a designer clothing start-up together as university graduates. Their experiences in the world of fashion soon led them to discover that excess inventory is a significant sustainability problem that needs fixing. Milan and Max founded Otrium to do just that.With 3M registered members, Otrium is seeing its revenues more than double in 2021. It has over 300 fashion brands on its app globally and serves more than 20 markets across Europe and the US from 3 logistics hubs. 
- Partnership will give Otrium’s three million members greater visibility of brands going the extra mile when it comes to sustainability.- Shoppers can now select a filter showing only ‘Conscious’ brands and products, rated using Good On You data - Partnership comes as Otrium announces new Good On You accredited brands onto its marketplace including Adidas by Stella McCartney, Alchemist and Closed joining longer standing partner brands including Karl Lagerfeld, Alex Chung, Adidas and BelstaffOtrium, the premier fashion outlet marketplace today announces a partnership with Good On You, fashion’s #1 source for brand sustainability ratings. The partnership represents a significant step forward for the industry in making sustainable fashion more accessible. Otrium’s three million members around the world can now instantly see what brands go the extra mile on sustainability directly on the search results pages.  Otrium members can now select a filter on the website or app that shows only ‘Conscious’ brands and products. This ‘Conscious’ label is based on Good On You’s rigorous ratings methodology, which evaluates each brand’s track record on the environment, labour and animal welfare. On Otrium, brands are asked to consent to show their rating.  Good On You independently rates brands on behalf of consumers. The focus on transparency is why ratings are based solely on publicly available information including industry-leading standards, certifications and brands’ own reporting. To date, Good On You has rated more than 3,000 brands including mainstream fashion houses, smaller designers and ethical labels. Otrium co-founder and CEO, Milan Daniels, said: “We’re committed to finding ways to help our members shop more consciously, giving our fashion-lovers the best possible online retail experience while making sure every item of clothing produced is worn. Our partnership with Good On You will help to improve visibility for our millions of members so they can easily choose brands that go the extra mile to be more sustainable.It’s essential that we collaborate with external experts like the Good On You team. We are in the business of helping fashion brands waste less with a purpose-led vision of a circular future for the fashion industry. There are enormous challenges ahead as the world pushes towards a more sustainable future and we’re playing an important role by working with brands to help them reduce waste in fashion.”  Sandra Capponi, co-founder of Good On You, said:"Fashion urgently needs to make progress on sustainability issues, and consumers have significant power to push the industry forward. We believe everyone has a right to know how brands impact the issues that you care about. That’s why it was natural for us to partner with an innovative platform like Otrium. We already share so many values around making sustainable fashion more accessible and combating waste.Thanks to this partnership Otrium is helping more customers than ever discover leading sustainable brands—and that can make a real difference. Collectively, when we're all choosing to support the brands doing good for people and the planet, then the industry will have no choice but to respond. That’s how we help create a sustainable future for fashion.”Otrium’s fashion marketplace was designed to help solve the enormous multi-billion dollar industry challenge of unsold inventory. Currently, approximately 12% of clothing produced, or more than $200 billion, stays unsold sitting in warehouses.Using proprietary technology, Otrium works with fashion brands to help find a buyer for every item of clothing produced to reduce the clothing waste. It offers brands an easy way to set up an online outlet store, leveraging its in-depth analytics to ensure brands maximize their revenues and ensuring customers get the best fashion brands at exceptional prices, all with premium service.Significant momentum behind OtriumThe news of the partnership with Good On You comes as Otrium announces new brand partners to its marketplace of over 300 brands including Theory, All Saints, Joseph & Temperley, which have been added to longer standing partner brands including Karl Lagerfeld, Alex Chung Adidas and Belstaff. On top of this the marketplace is seeing revenues more than double in 2021 and is launching in the US at the end of this month.Otrium has 3 million registered members and over 300 fashion stores now on its app. It serves over 20 markets across Europe and the US from 3 logistics hubs located in the Netherlands, UK and the United States.For further information, please contact [email protected]
We’re on a journey to make fashion smarter, giving fashion-lovers the best possible online retail experience and making sure every item of clothing is worn. Going forward, we’ll be sharing more about our conscious roadmap and responsible choices.Throughout the fashion industry, 12% of the garments that are produced stay unsold.Our purpose is: All Clothing Should Be Worn.We’re tech-enabling designer brands to find an owner for every item they produce.In this post, we’ll be sharing why we became a member of the Fur Free Retailer program, what this means and how you can join this movement to be fur free.The definition of furFirst things first: Fur means any animal skin or part of an animal with hair or fur fibres attached, either in its raw or processed state or the pelt of any animal killed for the animal‘s fur.What is not fur, and what we will keep selling:undefinedundefinedundefinedIntroducing the policyWe recently became an official member of The Fur Free Retailer program, which is supported by the Fur Free Alliance (FFA) – an international coalition of leading animal and environmental protection organisations worldwide.In a nutshell: An international effort to give consumers accurate information about a retailer’s fur policy, allowing consumers to make an informed choice when shopping.From a day-to-day perspective our platform will stay the same, as we currently do not have any garments that contain fur. Having this accreditation makes this official – for our customers and for our partners.We have chosen to sell leather and other animal derived materials – but not the pelt of any animal killed for the animal‘s fur. As more vegan alternatives, innovations and products come to market we will continuously reassess our policy regarding animal-derived materials like leather.Becoming fur free is a first small step of our journey, with the goal of having a positive impact on the fashion industry.Conscious brands at OtriumWe’re always on the lookout for Conscious brands so if there’s a brand you love for their sustainability credentials that you feel we should be featuring please reach out to undefined.How can you be fur freeWhen purchasing a garment with faux fur, check the points below to be sure you’re not wearing real fur. Sometimes, faux fur is being substituted for real fur by some manufacturers. You can follow these four checkpoints:undefinedundefinedundefinedundefinedundefined.
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