Japanese retail giant buys Estonian co Fits.me

The Japanese retail and wholesale group Rakuten has acquired 100 percent of Fits.me, a startup founded in Estonia and now headquartered in London that develops “virtual fitting rooms,” Techcrunch reported.

Rakuten plans to run Fits.me as a standalone business, where it will continue to develop its technology, grow its business and work with existing clients. The latter includes Thomas Pink, Hugo Boss and home shopping channel QVC.

James Gambrell  will stay on as CEO of the 65-person company, which still lists co-founders Heikki Haldre and Paul Pallin as active employees.

Fits.me offers two-way technology that lets online buyers who cannot physically try something on better visualize how those items might fit them, and lets retailers collect more information about the preferences and interests of visitors to their sites.

“Not only does the virtual fitting room provide customers with a more realistic shopping experience, it also empowers merchants with the valuable data they need to continually improve their service,” Rakuten’s CEO and founder Hiroshi Mikitani said in a statement, describing the acquisition as a natural complement to Rakuten’s growing portfolio of e-commerce and marketing services.

Techcrunch said Rakuten has been on a buying and investment spree in the last couple of quarters, which most notably included a 530 million U.S. dollar round of funding for Lyft in March and the launch of a share offering in June to raise 1.5 billion dollars to help finance some of that activity.

Prior to Rakuten buying Fits.me, the company, founded in 2010, was in the process of raising a round of funding specifically looking for strategic investors to complement the 14.3 million U.S. dollars it had already received from Gambrell, Conor Venture Partners, Entrepreneurs Fund, SmartCap and a number of others.

With consolidated sales of 598.6 billion yen (4.36 billion euros) and a net profit of 70.6 billion yen (515 million euros) in 2014, Rakuten ranks as one of the biggest retailers globally.

Source: BNS


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