Octopus Ventures leads $22m round for Outfittery

Mikkel Stern-Peltz
15 August 2016

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Octopus Ventures has led a $22m funding round for Berlin-based shopping service startup Outfittery.

The investment also saw participation from existing investors Northzone, Mangrove Capital Partners, Highland Europe and Holtzbrinck Ventures. Including this latest round, Outfittery has raised in excess of $60m over five funding rounds since it was founded as Paul Secret in 2012.

In addition to the VC firms, Outfittery's group of backers was joined by U-Start Club, an investment firm managing capital for high net-worth individuals and family offices.

Outfittery plans to use the new funding to support further growth and consolidate its position in its existing markets.

Previous funding
The company first raised institutional funding in June 2012, when HTGF and Holtzbrinck invested an undisclosed amount. In January 2013, Outfittery raised another undisclosed round from existing investors as well as IBB, Mangrove and RI Digital Ventures.

The company raised its first major round in February 2014, when Highland Europe led a €13m investment alongside the previous backers. This round was followed by a $20m capital injection in March 2015, led by Nordic VC Northzone alongside five of Outfittery's existing investors.

Company
Founded in 2012, Outfittery is an online shopping service targeting men.

Its concept is similar to that of The Cloakroom, a Dutch startup that has raised around €2.5m from Connect Venture and angel investors since it was founded in 2013. Outfittery's customers answer questions about their style and clothing preferences, as well as their measurements, online. They are then contacted by a style adviser, who puts together an outfit and sends it to the customer. The customer can then pick which items to keep and return the others free of charge.

The company generated turnover in excess of €10m in 2015 from operations in eight European countries. Outfittery employs 300 people and claims to have 400,000 users.

People
Octopus Ventures – Rebecca Hunt (investment manager).
U-Start – Stefano Guidotti (CEO).