Target Information

Veesual, founded in 2020 and headquartered in Paris, is a leading virtual try-on platform modernizing the online shopping experience in the fashion industry. The company specializes in augmented shopping solutions, which allow consumers to visualize clothing on diverse models, improving customer satisfaction and reducing return rates. Veesual’s proprietary Image Generation Engine (IGT) is designed to help fashion brands deliver visually appealing imagery while dynamically adapting various clothing pieces to different models, emphasizing inclusivity and diversity.

The company collaborates with notable brands across Europe, including premium names like Claudie Pierlot, children's fashion brands like Sergent Major and DPAM, and popular retailers such as La Redoute and Gemo. Veesual's innovative tools empower brands to enhance their e-commerce platforms, providing a competitive edge in a rapidly evolving digital marketplace.

Industry Overview

The fashion e-commerce sector is undergoing a transformative phase, driven by technological advancements and changing consumer behaviors. As of 2023, the landscape is shifting towards more inclusive marketing strategies that reflect the diversity of modern consumers. Traditional photo shoots for online retail featuring a variety of models are often prohibitively costly, presenting challenges for brands aiming to connect with all demographics.

According to recent studies, online retail is projected to surpass $8.1 trillion in sales by 2026, with approximately 24% of retail transactions happening online. This surge necessitates the development of scalable and cost-effective solutions to enhance customer engagement, thereby boosting sales and minimizing returns. Companies that adopt innovative technologies like Veesual's virtual try-on are better positioned to thrive in this competitive environment.

As the fashion industry strives to cater to a wider range of body types, sizes, and ethnicities, the demand for accurate virtual try-on technologies is more pressing than ever. The transition from 3D to 2D virtual fitting solutions not only streamlines the shopping process but also aligns with brands' goals of showcasing inclusivity effortlessly. Veesual’s combination of affordability and efficiency in its offerings stands to play a pivotal role in reshaping online shopping.

Rationale Behind the Deal

The latest $7.5 million Seed funding round led by AVP (AXA Venture Partners) and Techstars is integral to Veesual’s strategic expansion plans into the US market. This investment will allow Veesual to open its inaugural US office, recruit senior talent locally, and further refine its product offerings tailored for American apparel companies. A significant component of this initiative is the newly-formed partnership with EILEEN FISHER, a leading women’s fashion brand that aligns well with Veesual’s mission.

This partnership exemplifies Veesual's commitment to disrupt the e-commerce landscape by deploying next-generation virtual try-on technology that enhances the shopping experience for a diverse customer base. The collaboration with a well-established brand like EILEEN FISHER will bolster Veesual’s credibility and accelerate market penetration, making the timing of this investment strategic and vital.

Investor Information

AVP (AXA Venture Partners) is a prominent investor with a track record of funding innovative technology companies poised for growth. Their investment philosophy focuses on supporting promising ventures through various stages of development, offering operational expertise along with financial resources. François Robinet, Managing Partner at AVP, expressed confidence in Veesual’s ability to navigate market demands effectively while emphasizing the firm's potential for breakthrough innovation.

Techstars, known for its accelerator programs that empower startups, joins AVP in this investment round, providing valuable mentorship and connections within the entrepreneurial ecosystem. These investors' combined strengths will assist Veesual in scaling its operations both in Europe and the US, enabling it to leverage its technological advancements for the benefit of a global audience.

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Assessing the investment in Veesual reveals a promising outlook given the considerable growth in the e-commerce sector and the mounting demand for effective virtual fitting solutions. With a multi-pronged approach that emphasizes inclusivity and reduced customer returns, Veesual stands to redefine the shopping experience in a highly competitive market. The established partnerships and investor backing further enhance its potential for success, especially in the lucrative US market.

The timing of this funding round seems opportune, with the projected market dynamics favoring technologies that simplify and enhance online retail experiences. As companies strive to meet customer expectations in terms of diversity and fitting accuracy, Veesual's innovative solutions will play a critical role in fulfilling these demands.

Overall, Veesual embodies an attractive investment opportunity. The company's proactive engagement with both customers and retailers positions it well for the future. With strong investor support and a clear strategy for expansion, Veesual is poised for significant growth, making it a deal worth closer examination for potential stakeholders in the fashion technology space.

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