Home / Knowledge / News / Apparel/Garments / ModCloth aims to revolutionize fashion industry
ModCloth aims to revolutionize fashion industry
01
Jul '10
ModCloth, an innovative online retailer specializing in fashion and decor from independent designers, has secured $19.8 million in a round of Series B financing. The funding will be used to capitalize on the explosive growth of the indie fashion e-retailer, which became profitable in 2009 after four back-to-back years of roughly 600% annual growth. This round is led by Accel Partners, which also includes Facebook, Etsy and Groupon in their portfolio. ModCloth's previous investors, First Round Capital and Floodgate, are also participating. Theresia Gouw Ranzetta joins Josh Kopelman of First Round Capital and Mike Maples of Floodgate, alongside husband-and-wife co-founders Eric Koger and Susan Gregg Koger, on ModCloth's board.

ModCloth will use the capital to further develop its own social commerce platform built in Ruby on Rails. A full scale build-out of the product management and digital experience teams is already underway in San Francisco, where a new headquarters was opened in May. There are also plans to launch a new supply chain operation in Los Angeles within the next several months. The original Pittsburgh office will continue to serve as the hub for customer support and distribution, along with other core functions.

"We want to fundamentally change the fashion industry," says co-founder Susan Gregg Koger. "For so long, creating fashion has been this top-down process where the few 'insiders' at the top get to say what's cool. We've already started to change that through programs like Be the Buyer, which empowers customers to vote samples from indie designers into production. But that's just the beginning; our list of to-dos is a mile long."

ModCloth was started by Eric and Susan, when they were just teenagers, during the summer before entering Carnegie Mellon University in 2002. Eric applied his tech experience and business acumen to help transform Susan's creativity and love of "thrifting" into an online business. After graduating from college in 2006, Susan and Eric decided to expand, offering vintage-inspired clothing from talented indie designers from all over the world. The company has gained attention for its unique dedication to customer engagement on the site, as well as for being a vanguard in the social media sphere. Site features such as Be the Buyer have inspired a fun and unique social shopping community that empowers both independent designers and customers.

"ModCloth is helping to change the way people shop in the same way that Facebook changed the way we communicate. In a very short period of time and with little outside capital, the company has leveraged the social web to empower a wildly loyal and engaged customer base," said Theresia Gouw Ranzetta of Accel. "Under the leadership of Susan and Eric, we expect ModCloth to continue its customer-focused innovation and phenomenal growth," added Ryan Sweeney, who is also part of the Accel team backing ModCloth.

Long-term, the funding will enable ModCloth, now with a team of over 150, to continue to blur the lines between consumers, designers, producers, and e-retailer.

ModCloth


Must ReadView All

Textiles minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search