Menswear personal styling website Thread has today announced $22m (£16.7m) in additional funding.
The Series B funding round was led by H&M group’s investment arm H&M CO:LAB. Additional funding comes from venture capital investment firms Balderton Capital, Beringea, and Forward Partners, alongside executive chairman of Amery Capital, Maurice Helfgott, and former deputy president of luxury goods at Lane Crawford, Sebastian Picarod.
This round brings total investment in Thread to over $40m (£30.4m).
Speaking to Drapers, CEO Kieran O’Neill said: “We’ve always had a really good set of investors from the tech and start up world and this round we were interested in getting an investor who knew the fashion retail industry inside out.”
He added: “H&M is one of the best global retail companies and when it comes to understanding customers and how guys shop globally they can offer way more than a normal investor can.”
The funding will be used to expand the company’s AI team and grow brand awareness through new marketing strategies.
O’Neill said: “We have our first outdoor ad campaign going live in a couple of weeks on the tube and with cross-track posters. We’ve also been building out an in-house creative team. The funding gives us a chance to have a visual identity refresh.”
During the last year, Thread has signed partnerships with 50 additional partners. New brands include Barbour, Hugo Boss, Levi’s and Ted Baker, as well as emerging labels such as Wax London, Kestin Hare and The Workers Club.
The company, which employs around 100 people, now has over a million users. A quarter of Thread customers now do all of their clothes shopping on Thread and the average customer is in their late twenties to early forties.
Three new executives have recently joined the business, including David Scott, previously operations director at Deliveroo, Rachel Sheridan, previously chief product officer and trading director at WorldStores, and Tim Grimsditch, previously vice president of marketing at Kano Computing and marketing director at Spotify.
Founded in London by Kieran O’Neill, Ben Kucsan, and Ben Phillips in 2012, Thread was part of the Y Combinator program, which helped create Airbnb and Dropbox.
Thread plans to allow customers to invest alongside professional investors through the crowdfunding platform, Crowdcube, later this year.
Read more about Thread’s innovative approach here.