If the shoe fits, keep it! That’s the goal of True Fit, which helps shoe and apparel businesses cut down on e-commerce returns.
The startup partners with big retailers like Nordstrom, Macy’s and Kate Spade to guide online customers to order the right size and style for their measurements. True Fit uses an algorithm based on self-reporting and purchase history to figure out what items fit the way a person likes.
And Intel Capital is investing $25 million to help it expand its business, alongside existing investors Jump Capital and Signal Peak Ventures.
“You learn a lot about people from what they buy and what they keep,” said William Adler, True Fit CEO. He characterized the Boston-based business as a Spotify for fashion.
True Fit hopes to capitalize upon the growing online apparel business, forging more partnerships with global brands, who would be potentially willing to pay them a lot of money if their data continues to prove that it can grow sales and reduce returns. The company claims it is currently leading to a five percent lift in net revenue for its retail customers.
“Retail is a multibillion-dollar industry, and it’s ripe for innovation via technologies that benefit consumers and businesses alike,” said Joe Jensen, Vice President and General Manager, IOTG Retail Solutions Division at Intel Corporation. “We have been impressed by the unique structured data set True Fit has aggregated in collaboration with leading retailers, thousands of top brands, and millions of consumers.”
This is not the first time that Intel has invested in a business focused on online shopping. The firm also participated in rounds for Body Labs, which uses 3D imaging to help customers figure out what clothing would look like on them. (Adler insisted that Body Labs is not a competitor of True Fit and that the businesses are complementary and could potentially work together.)
True Fit previously raised $15 million in funding back in January 2015.