Fitbay, a Danish-founded service that helps people to find clothes that fit, announces that they have raised $2 million in a seed round from New York-based Steadfast Venture Capital and Stockholm-based Creandum. This becomes the second deal for Fitbay in just the past 6 months, as they previously raised $400K in a round with Jesper Buch and Creandum this past January.
With the announcement of this latest deal, the company says that they intend to grow their product team in Copenhagen and commercial team in New York City. Fitbay reports growth of 110% monthly since it launched in open beta in February and says that 40% of their users come from the New York.
According to research conducted by Credit Suisse in 2013, 40% of clothing purchased online gets returned, often due to inconsistencies in sizing between brands and sizing-standardization that ignores different body types. Fitbay was launched by Christian Wylonis in an attempt to deal with this issue by offering users clothing recommendations based on their specific body-type. No measuring is required, as you sign up and then answer 5 questions in order to identify suitable types of clothing.
In addition to offering recommendations, Fitbay allows users to interact with one another in order to provide advice and help to find suitable clothing. Fitbay currently raises revenue by taking a commission from each sale made through the site.