Stitch Fix, the online personal shopper for people who hate to shop, has raised $30 million from its investors in a Series C funding round. Re/code reports that the new financing gives Stitch Fix a pre-money valuation of $300 million. It also nearly triples the total funding the three-year-old company has raised from its previous sum of $16.75 million over two rounds.
Stitch Fix sends boxes of clothes selected by personal shoppers—called "fixes"—to customers who don't want or have time to pick out their wardrobes themselves. Similar companies include Trunk Club for men and bra seller True & Co. Katrina Lake, the founder and chief executive of Stitch Fix, has described the goal of the project as combining the best of brick-and-mortar retail with its e-commerce offshoot and markets the company to women who don't have time for shopping in their busy days. The latest injection of capital indicates that the interest really is there for personalized online shopping.
Lake has observed that the women's apparel market is a $100 billion business. She told me in April that the vast majority of Stitch Fix customers come back for a second fix, with 70 percent returning within 90 days of their first one. Stitch Fix has declined to share whether its business is profitable, but its investors at least seem to be giving the model a vote of confidence.