Paul Foster’s Family Office invests in €1.49M round of Purple Dot to disrupt the retail and fashion discount dynamics. Other investors were Connect Ventures, AI Seed, Moxxie Ventures, Andy Chung and Philipp Moehring (from AngelList), and Vijay Pandurangan and Alex Roetter (both ex-Twitter).
Purple Dot: Finance in fashion for a full business model turnaround
Purple Dot could be described as the ‘worth-the-wait’ payment option for fashion brands. With its technology, they aim to disrupt the fashion industry and its outlet and discount sales model.
When shopping online today, customers can either pay the retail price or walk away. This means paying more than what you can afford or forcing the retailer to sell the product at a loss. Purple Dot allows customers to buy products sustainably, ending poor pricing tactics and profit-crunching sales at the same time by enabling them to make an offer for a product they want but is too expensive.
Once they have sent the offer, which is paid upfront, it is up to the retailer to accept the offer. In case they do not, customers will receive a full refund.
As the general discounted price does not fall below a 10-20% reduction from the original price, it helps fashion brands reduce losses from discounting, as ‘outlet’ style discounting usually implies a 60-80% discount on the price and also contributes to enabling the sell of wasted inventory.
This new way of online fashion purchasing can definitely help end the consumerism wheel this industry has gotten into and raise awareness on the climate and labor issues the current industry’s business model is generating.
Paul Foster: A successful startup investment record
Paul Foster, the co-founder of the leading job site Indeed (which was sold to the Japanese Recruit Holdings in 2012), is an active seed and early-stage investor. Previous investments of the Foster family office were Monzo, Thriva, or Cargo Mate. One of his investments, Twizoo, was already acquired by Skyscanner.
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