From computer vision-driven technologies aimed at cutting down on apparel returns by enabling consumers to utilize advanced sizing tech to artificial intelligence and machine learning-driven software that helps to prevent counterfeiting, piracy, and digital impersonators, companies across the retail segment are introducing new tools that make fashion commerce – and retail more broadly – “more nimble, sustainable, and engaging for shoppers.” At the same time, the striking rise of e-commerce, especially in the wake of the pandemic, and the post-pandemic call for companies to provide consumers with “an exponentially deeper level of engagement [both] online and offline,” per McKinsey, has led to the rise of an array of B2B SaaS solutions and other tech-providers that are looking to help transform the retail segment.
Research published by Google’s Cloud business in November 2020 (and reported by Wired) revealed that retailers were “looking to use AI within ten different areas of their business – from demand prediction to customer loyalty schemes and product personalization.” More recently, McKinsey stated in 2021 that “the operational potential of technology is becoming ever more apparent,” with fashion companies that embed AI into their businesses models now – in order to “enable new logistics and sales-fulfillment options (such as click-and-collect and drive-through), fuel innovative ways of customer acquisition, help predict and manage inventory to create a more resilient supply chain,” etc. – standing to see “a 118 percent cumulative increase in cash flow by 2030.” On the other hand, the consultancy stated that companies that “are slower to invest in digital technology will lag behind, and could see a 23 percent relative decline.”
Meanwhile, Meticulous Research expects the value of the AI-in-retail market, alone, to reach $19 billion by 2027.
Against this background and in light of enduring efforts to bring new tech to the retail market, we have compiled a tracker of funding and M&A to provide a broad overview of tech-centric investments in fashion and the broader retail space, and shed light on what the trajectory of this segment of the market looks like more broadly.
Apr. 9, 2025 – Zozo to Acquire Fashion Platform Lyst for $154M
Zozo, Inc., the Japanese fashion e-commerce giant, has acquired London-based fashion shopping platform Lyst for $154 million (€139 million). The deal, announced Wednesday, supports Zozo’s broader international expansion strategy and is set to close at the end of April. Post-acquisition, Lyst will operate as a wholly owned subsidiary of Zozo, maintaining its independence under CEO Emma McFerran and its London headquarters. The acquisition strengthens Zozo’s presence in the US, UK, and European markets, while backing Lyst’s growth through investment in AI-powered discovery tools.
Apr. 8, 2025 – Zalando Acquires 3D Tech Startup DeepAR
Zalando has acquired London-based startup DeepAR and its ShopAR platform, bringing advanced 3D and augmented reality technology into the fashion e-tailer’s ecosystem. Financial terms of the deal were not disclosed. The acquisition gives Zalando access to DeepAR’s proprietary AR platform, 3D content capabilities, and tech talent, as it looks to elevate the online shopping experience for a new generation of consumers. DeepAR will support Zalando in building one of Europe’s largest catalogs of 3D digital twins and AR try-on products.
Apr. 3, 2025 – Digital Brands Group Acquires Open Daily Assets
Digital Brands Group has acquired the assets of Open Daily, a virtual shopping tech company known for solutions that enhance online retail and deepen consumer engagement. Core assets include Outfit Virtual Shopping, Outfit Voice AI, and Outfit ND-AI. “With Open Daily’s virtual shopping technology assets, we see an opportunity to enhance digital retail experiences,” said Hil Davis, CEO of Digital Brands Group. “This acquisition strengthens our ability to provide brands with innovative tools to improve engagement, increase sales, and create a more immersive shopping environment.”
The deal aligns with Digital Brands Group’s strategy to expand its presence in online retail through interactive commerce. The company sells apparel via both DTC and wholesale channels across a portfolio of fashion brands.
Apr. 3, 2025 – Grace Raises €5.9M in Seed Round
Grace, a Paris-based fintech offering embedded theft and loss protection for luxury items, has raised €5.9 million in Seed funding. The round was led by FinTech Collective and Speedinvest, with participation from Firstminute Capital, Purple, Kima Ventures, Bpifrance, and scouts from a16z and Sequoia. “This funding will help us scale our AI-powered antifraud tech, expand our team, and reach our goal of covering 200,000 luxury items by 2025,” said co-founder and CEO Quentin Roy. Grace partners with insurers like Chubb to offer instant, brand-paid coverage at purchase—already piloted by Copin and Phi 1.618.
Apr. 2, 2025 – Flagship Raises $3.75M in Seed Round
Flagship, the digital visual merchandising startup, has closed a $3.75 million seed round led by Coreline and Veridical Ventures, with backing from Tidal Ventures and Macdoch Ventures. The company also announced its U.S. expansion, launching with an unnamed performance apparel brand and new retail partners including Mejuri and Mad Happy. “Visual merchandising has historically relied on manual processes and instinct,” said founder and CEO Simon Molnar. “Our platform brings data-driven decision-making to store optimisation.”
Flagship creates digital twins of store locations, enabling retailers to optimise product placement and map revenue impact. Mejuri’s Kari Beiswanger said the partnership helps elevate in-store experience while scaling global best practices.
Apr. 2, 2025 – Markmi Raises €1.1M in Seed Round
Belgian fashion tech startup Markmi has raised €1.1 million in seed funding to expand its AI-powered markdown assistant across Belgium, the Netherlands, the Nordics, and the US later this year. The round drew support from notable fashion and tech investors, including Wolf (Luc Van Mol, ex-ZEB), the Torfs family, and Lorenz Bogaert, Matthias Geeroms, Jan Teerlinck, Roeland Delrue, Jonas Deprez, and PMV.
“With AI, it’s no longer a guessing game—it’s a strategic advantage,” said founder Laurent Mainil. Markmi’s platform helps retailers like C&A, G-Star, Zizzi, ZEB, and Torfs improve pricing decisions, delivering 5–10% revenue growthand 2–5% margin gains during markdowns. The capital will fuel rollout and support Markmi’s evolution into a full AI pricing suite, including promo management and full-price optimisation.
Mar. 20, 2025 – eBrands Raises €7.5M in New Round
eBrands has raised €7.5 million in a funding round led by the Veikko Laine family office, Varma Mutual Pension Insurance Company, and operative shareholders. The Nordic-based export platform, which helps consumer brands scale internationally through e-commerce and retail channels, will use the capital to enhance its AI-powered platform Apollo, expand its global reach, and support more brands navigating international growth.
“Expanding to new markets often comes with high costs and logistical challenges, especially with evolving trade regulations,” said Antti Moilanen, Head of the Partner Platform Business at eBrands. “Apollo simplifies the process, offering brands a faster, more transparent way to scale internationally.”
March 18, 2025 – Slikk Club Raises $3.2M in Seed Round
60-minute fashion delivery startup Slikk Club has raised $3.2 million in an all-equity seed round led by Lightspeed and Multiply Ventures, with participation from angel investors including Abhishek Goyal, Abhinav Pathak, Madhav Tandan, Nikhil, and Saurabh Gupta. The Bengaluru-based company plans to use the funds to scale operations across the city, aiming to cover 80% of pincodes via multiple dark stores, with expansion into tier 1 and tier 2 cities over the next five years.
“At Slikk Club, we set out to change the way people experience fashion—making style as instant and effortless as their impulse to shop,” said CEO Akshay Gulati. The company also plans to expand into seven-plus lifestyle categories, using advanced tech for seamless shopping, fulfillment, and returns.
This is a short (and incomplete) excerpt from a data set that is published exclusively for TFL Pro+ subscribers. For access to our up-to-date retail tech investment and M&A tracker, inquire today about how to sign up for a Professional subscription.
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