Stitch Fix Raises $4.75 Million
Stitch Fix is a San Francisco based startup that has raised $4.75 million in Series A funding. This round of funding was co-led by Baseline Ventures and Lightspeed Venture Partners. Western Technology Investment also participated in this round. Stitch Fix has over 10,000 clients. Stitch Fix currently has over 10,000 clients and they have a staff of 50 employees. The company has an annual sales run rate today is double of what they had 2 months ago.
Stitch Fix plans to use the new round of funding to hire more staff and grow their inventory, products, and reach. The company even has a waiting list of people that want to use the service. The company makes it possible for stylists to use technology and tools to increase their efficiency. When a new user goes to the Stitch Fix website, they fill out a form about their body shape, size, personal style, and budget. The user also rates photos of clothes and accessories so that the website can learn more about her taste.
A Stitch Fix stylist uses this data to ship a box of five items for the user to try on. The user will then keep and pay for the items that she likes and sends back the ones that she does not like. The company applies a $20 per box styling fee if the user sends everything back. Otherwise the $20 is applied to what the user keeps.