Threads, a chat-based shopping service that helps customers find luxury items, has raised $20m in series A from C Ventures, Moda Operandi’s lead investor, and matchesfashion.com investor Highland Europe.
Aimed at high net worth millennial shoppers, Threads uses uses WhatsApp, Instagram, Snapchat and WeChat to connect users all over the world with a personal shopper. The service then sources luxury clothing, jewellery, and accessories via direct agreements with luxury brands and suppliers. The main markets for the service are Asia, the Middle East and the US.
The chat platform that Threads uses has proven to be five times more effective at converting sales than traditional e-commerce. The service is backed by a powerful tech team, who plan to incorporate AI-powered chat bots into the system in the future.
Sophie Hill, founder and CEO of Threads, said: “I started the business because I believed that luxury retailers were ignoring my peers, the generation of shoppers under 40. I believe the future of retail involves personalisation and chat. People want something that is akin to a retail experience but they want it through their mobiles and they want unparalleled convenience and availability. Social media is already driving much higher levels of brand engagement than traditional digital channels have been able to and we see this increasing in the future, as social becomes the default channel for fashion trends, styling and commerce.”
Threads was founded in 2010 and has seen sales double every year. The funding raised in this round will be used to continue company growth as new offices are opened in Hong Kong and New York.
70% of Threads clients are under 35 and it’s estimated that this age group will account for 45% of global luxury spending by 2025.