Otrium raises 24 million euro to fuel international expansion

New York – Amsterdam-based online fashion marketplace Otrium has recently secured a 24 million euro Series B financing round led by investors with stakes in other fashion companies such as Alibaba, Farfetch and ASOS.

Otrium helps global and independent clothing brands sell end-of-season collections that would otherwise go unsold, as the company states on its website.

Otrium’s fashion marketplace gives retailers full control over price, while they can leverage an array of advanced analytics and insights into dynamic pricing, excess inventory and merchandising.

The Dutch company has announced they will use the new funding to propel their international expansion, starting with the launch of its UK site, adding to its presence in the Netherlands, France and Germany.

From hipster sweaters to end-of-season tech-led marketplace

Dutch entrepreneurs Milan Daniels and Max Klijnstra launched a sweater brand in Amsterdam. They were selling in over 20 countries, pulling 4-6 collections per year. They soon found themselves stuck with a growing excess of stock from previous collections. That led them to look into solutions to dispose of end-of-season garments. As they explained in a recent feature by ‘Forbes’, they soon learnt that every brand had the problem of unsold inventory, that stock buyers and flash sales took very high margins, and that it was difficult for many brands to break the barrier to market entry at physical outlets.

In 2015 they launched Otrium, an online marketplace for end-of-season clothes that allows brands to sell their unsold inventory at cheaper prices. Five years later, Daniels and Klijnstra have raised 24 million euros in Series B funding, in a round led by Eight Roads Ventures, with existing investors Index Ventures and Hans Veldhuizen participating.

Photo: Otrium Facebook