One of the major hurdles for online retailers selling apparel and footwear is helping customers find something that fits just right. Because otherwise the sale will likely result in a return and some frustration on part of the customer.
Woburn-based True Fit is trying to alleviate this problem with its data-driven footwear and apparel discovery software platform, and, to help take it to the next level, the company announced on Wednesday that it has raised a $25 million Series B round from Intel Capital, Signal Peak Ventures and Jump Capital. The company is using the new funding to hire more people to serve its retail customers and expand its data science team, as well as accelerate product innovation.
"The footwear and apparel market, it’s becoming a $2 trillion market."
True Fit's platform aims to help apparel and footwear shoppers find the right fit through its "Confidence Engine" and also gives them a way to receive highly personalized recommendations through its "Discovery Engine." The platform works by being fed data on the measurements and other specifications of clothing and footwear from 10,000 partnering brands — including New Balance and Michael Kors — and uses machine learning algorithms to make those recommendations.
Bill Adler, True Fit's CEO, told BostInno that there are 20 million people registered on the True Fit platform, which appears on the websites of online retailers like Nordstrom and Kenneth Cole. He said retailers typically see a compounding 5 percent increase in annual revenue by using the platform, which they pay a monthly subscription for, meaning a retailer making $100 million in annual revenue would see an additional $5 million the first year.
"The footwear and apparel market, it’s becoming a $2 trillion market. It’s a massive market," Adler said. "It’s much bigger than music and books, and at the same time those other categories have really successfully transitioned to digital."
So True Fit is working to change that, and the company appears to be making good progress so far: True Fit currently works with 70 retailers right now, Adler said, and that number is expected to reach around 100 by year's end.
True Fit has 67 employees across its Woburn headquarters and offices in Los Angeles, London, Munich and Mumbai.
