Fashion tech start-up Threads has raised $20m (£15.7m) from Highland Europe and C Ventures in its latest funding drive.
The London-based fashion site, which targets young, high-net-worth millennials, was founded in 2010 and relies on WhatsApp, Instagram, Snapchat and WeChat to help customers find luxury products.
The individual investment amounts by each firm have not been disclosed. The funds are set to help drive the global reach of the Threads brand and ecommerce site.
Threads says the average transaction from consumer sales has doubled year on year to £2,367 per transaction. It works closely with luxury fashion brands Dior, Fendi and Chopard. It has customers in 100 countries, and 70% of its clientèle are aged under 35.
Sophie Hill, founder and chief executive, said: “I started the business because I believed that luxury retailers were ignoring my peers, the generation of shoppers under 40. I believe the future of retail involves personalisation and chat. People want something that is akin to a retail experience but they want it through their mobiles and they want unparalleled convenience and availability.
“Social media is already driving much higher levels of brand engagement than traditional digital channels have been able to and we see this increasing in the future, as social becomes the default channel for fashion trends, styling and commerce.”
Clive Ng, co-founding partner of C Ventures, said: “We set up C Ventures to invest in companies that recognise the huge spending power of younger shoppers and also their preference for unique items and personalised content. Threads captures these trends into a game-changing luxury retail solution, with huge potential in Asia and other luxury markets.”
Tony Zappala, partner at Highland Europe, said: “We are seeing more and more that customers want to shop from their mobile device through channels such as Instagram, Snapchat, WeChat, WhatsApp and so on. This trend is being led by Asia where millennials and Generation Z are rapidly becoming the biggest market.”