Capital now exceeds £5m
Mallzee raises new funding for retail product
Cally Russell: founder and CEO of Mallzee has raised new funds
Marketplace app and retail analytics firm, Mallzee, has raised fresh capital, taking total funding for the Edinburgh based firm to more than £5 million.
This latest £1.9m round will support accelerated sales of its data insights offering, Product Future aimed at improving retailer margins.
The new funding came from existing investors, including Scottish Investment Bank and Par Equity and new investors Equity Gap and London Scottish Investment Group and coincides with the appointment of retail expert Peter Robinson to the company’s board.
The team is now focussed on helping retailers survive what it calls the “retail apocalypse” currently facing them.
New product failure is an issue that is estimated to cost retailers billions every year. In the three months leading up to Christmas 2017, traditionally their strongest trading quarter of the year, over 50% of all fashion products ended up on clearance rails.
Mallzee’s Product Future solution helps tackle this problem by enabling brands and retailers to test and analyse product sales potential before any orders are placed by showcasing and capturing feedback through the app’s Tinder style interface.
Using this data in collaboration with companies’ merchandising and buying teams, can result in an improvement of between 6% and 10% in new product success rates, the difference between a profit or loss for many retailers.
Since launch, the Mallzee shopping app has racked up more than 1.4 million downloads and has seen more than 150 companies list on the Mallzee platform, driving over 25 million visits to partner sites.
Mr Robinson is a retail visionary with over 35 years’ experience with particular expertise in multi-channel and digital commerce. His previous roles include eight years as executive head of e-commerce at Marks & Spencer where he pioneered the early development, introduction and rapid scaling of its e-commerce offering.
He was also multi-channel director at Selfridges where he led the launch of its online service.
He said: “I’m very pleased to have joined the board of Mallzee having been impressed with the way the business has developed and pushed m-commerce and retail analytics boundaries over the last few years.
“The team have a real can-do attitude and I’m delighted to work with them to build their retail insights capabilities as I believe that Product Future can fundamentally help the fortunes of many retailers.”.