On Wednesday, fashion e-tailer Moda Operandi announced its biggest funding to date — a Series F clocking in at $165 million. For those familiar with the world of high fashion: that’s enough to purchase 31,100 Chanel Black Caviar handbags. For those less familiar: that’s a lot.
This latest round was led solely by investment group Apax Digital and Hong Kong-based Adrian Cheng, who has previously invested in several fashion-focused businesses.
“I am hugely excited about Moda Operandi as an investment prospect. Its business model is cutting edge, with a curated customer experience that has a lot of potential,” Cheng, who will be joining the Moda Operandi board, said in a statement.
Its business model is cutting edge, with a curated customer experience that has a lot of potential.
The brand plans to use the $165 million to expand the size and scope of the business. CEO Deborah Nicodemus hopes that the financial backing, as well as the key partnership with Cheng, will help expand the site to new markets in Asia and the Middle East, according to a company statement.
“We look forward to continuing the momentum behind the transformation of the online luxury experience for our global clients,” she said.
Since its launch in 2010, Moda Operandi has become one of the most prominent and financially successful online fashion retailers. The brand’s model allows customers to pre-order designer fashion directly from the runway, closing the gap between when an item of clothing first appears to the public and when it hits the racks of a SoHo boutique.
Additionally, the company’s website and app boast a wide array of in-season designer fashion and accessories for immediate purchase.
A portion of the funds will be used to improve Moda Operandi’s personalization technology and invest in young brands growing in their avant-garde incubator, The Platform.
Like fellow online retailer Amazon, Moda Operandi made the leap to in-person retail in 2016, opening brick-and-mortar locations in New York and London’s poshest neighborhoods. Their by-appointment-only showrooms, pink awnings and all, may seem frivolous to some, but they are palpable realizations of Moda Operandi’s success.
In an era where fast-fashion giants like Zara and H&M seem to dominate the clothing industry, one might not expect a company that emphasizes a more traditional designer-client relationship to thrive.
But Moda Operandi’s latest funding more than doubles its total pool of financial support. The company has steadily raised millions of dollars on a yearly basis (the exception being 2014) since its opening day.
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