Lyst, a UK fashion platform known for its shopping search engine, has been acquired by Japanese giant Zozo for $154 million, aiming to reshape the online fashion shopping experience.
Lyst, the renowned UK fashion platform recognized for its shopping search engine and quarterly rankings of popular brands and products, has entered into an agreement to be sold to Zozo for $154 million. This acquisition positions Lyst as a wholly owned subsidiary of the Japanese e-commerce giant, while it will continue to operate independently from its base in the UK, with Emma McFerran remaining in her role as chief executive.
Zozo operates Zozotown, a leading online fashion marketplace in Japan that reported a gross merchandise value of 141,885 million yen (approximately $976 million) in its latest fiscal year. The company has also launched a luxury sector branded Zozovilla, attracting partnerships with prestigious fashion labels such as Versace, Marc Jacobs, and Maison Margiela.
Known for its innovative technology aimed at enhancing the online shopping experience, Zozo has developed unique tools like the Zozomat, Zozosuit, and Zozofit scan, which assist users in taking their measurements at home to better predict proper garment fitting. In 2019, the company was acquired by SoftBank’s Yahoo Japan arm, reinforcing its position within the tech-savvy e-commerce landscape.
Founded in 2010, Lyst has leveraged a growing interest in digital fashion and searched to raise an estimated $200 million, including an $85 million funding round in 2021, which valued the company at $700 million and was presented as a ‘pre-IPO’ funding round. However, Lyst has encountered growth challenges, including a turbulent online fashion market, escalating costs related to online traffic acquisition via Google and Meta, and a declining willingness among luxury brands to showcase their products on multi-brand platforms like Lyst.
Chris Morton, the founder of Lyst, transitioned from his role as CEO to become the executive chairman in 2022. Under new leadership, Lyst has focused on harnessing artificial intelligence to refine its search and discovery functions, expanding its editorial operations for more engaging content, and leveraging its extensive dataset by consulting with brand and retail partners.
With this acquisition, Zozo plans to accelerate Lyst’s initiatives in AI-driven fashion discovery and integrate its sizing and fit solutions. The two companies view this partnership as a strategic component of Zozo’s international expansion efforts. “Lyst’s strong footprint across the US, UK and Europe is complementary to Zozo’s leading market position in Japan, providing pathways for both companies to expand into new markets,” they stated.
Moreover, both firms emphasized their shared objective of reshaping the online fashion shopping experience, stating, “Zozo and Lyst share a vision to transform the online fashion shopping experience by bringing joy back to fashion discovery.”
Source: Noah Wire Services
