Flip Fit Sets $3.75 Million Raise

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Flip Fit Sets $3.75 Million Raise
Jonathan Ellman and Nooruldeen Agha

An Inglewood-based tech startup trying to solve one of apparel retail’s biggest challenges raised $3.75 million in seed funding Oct. 23.

The funding round for Flip Fit was led by Tel-Aviv-based TLV Partners.

Flip Fit created an application that allows shoppers to swipe left or right to determine whether they like a piece of clothing and to make their selections shareable with friends.

Shoppers can then try on the clothes at home and more easily return what they don’t like. The idea is to make online shopping more akin to a brick-and-mortar experience, where customers pick out clothes and try them on before deciding which to keep and which to put back on the rack.

Flip Fit delivers the clothes with the idea that many will be returned.

Nooruldeen Agha, co-founder and co-chief executive of Flip Fit, said that adding the social element helps make the experience less isolating.

Flip Fit folds the cost of returns, a $350 billion headache for the retail industry, into their business model.

Brick-and-mortar retailers shifting to online sales have struggled to keep up with the higher return rates among online shoppers. Industry analysts estimate that about 30% of all clothes purchased over the internet are returned. Flip Fit believes that number is even higher.

“Returns are our default,” Jonathan Ellman, Flip Fit co-founder and co-chief executive, said in a statement. “While the rest of the industry is fighting this phenomena, we are leaning into it.”

Manufacturing, retail and trade reporter Rachel Uranga can be reached at [email protected] or (323) 556-8351. Follow her on Twitter @racheluranga.

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