Otrium Raises $120M to Revolutionize End-of-Season Fashion

Otrium Secures $120 Million in Funding

Otrium has successfully completed a $120 million funding round, occurring only twelve months after its $26 million Series B raise. This latest investment is being spearheaded by BOND, alongside participation from existing investor Index Ventures.

Eight Roads Ventures, a current investor, is also contributing to this funding round.

The Core Concept of Otrium

Otrium’s business model centers around providing a platform for brands to sell end-of-season merchandise. Brands are able to list these items on Otrium, enabling continued sales beyond their traditional retail channels.

Currently, Otrium’s services are focused on the European market.

Challenges with Traditional End-of-Season Sales

Many brands currently conduct their own end-of-season sales. However, this approach often presents limitations.

Companies frequently struggle to fully clear their remaining inventory through these sales. Furthermore, luxury fashion brands may be hesitant to discount their products within their own stores, potentially impacting brand perception.

Consequently, a significant amount of produced clothing remains unsold, often leading to its destruction.

Otrium as an Additional Sales Channel

Otrium offers brands an additional avenue for selling specific end-of-season items. Online sales are particularly advantageous, as they streamline inventory management compared to managing smaller quantities across multiple physical stores.

A centralized online inventory simplifies the process considerably.

Brand Control and Flexibility

Recognizing the sensitivities surrounding discounted items, Otrium prioritizes brand control. Brands maintain authority over pricing, merchandising, and the visibility of their excess inventory.

Advanced Analytics for Data-Driven Decisions

The startup has recently introduced advanced analytics capabilities.

This feature is designed to assist brands in identifying products with enduring appeal – those that should remain available on a year-round basis.

A Shift Towards Evergreen Products

“We believe that the fashion world will see a rebalancing in the next few years,” stated Milan Daniels, co-founder and CEO of Otrium. “More sales will be driven by iconic items brands sell year after year, and there will be less reliance on new seasonal launches.”

This shift would create mutually beneficial outcomes.

Otrium would facilitate the sale of items with sustained relevance, while fashion brands could cultivate a lasting collection of evergreen products to complement their seasonal offerings.

Expansion Plans and Current Partnerships

With the newly acquired funding, Otrium intends to expand its operations into the U.S. market.

The company currently collaborates with a number of prominent fashion houses, including Karl Lagerfeld, Joseph, Anine Bing, Belstaff, Reiss, and ASICS.