Japan-based e-commerce company Zozo has announced its acquisition of fashion tech firm Lyst for $154 million, aiming to bolster its global presence and enhance AI-driven fashion discovery.
Japan-based e-commerce company Zozo, known for its popular online platform Zozotown, has announced its acquisition of fashion technology and e-commerce firm Lyst for a reported US $154 million. The acquisition, revealed on Wednesday, is part of Zozo’s ambitious strategy to bolster its global presence and enhance fashion discovery through advanced artificial intelligence technologies.
In a joint statement issued by both companies, it was confirmed that Lyst would become a wholly-owned subsidiary of Zozo while continuing to function independently from its base in London. Emma McFerran will remain at the helm as Lyst’s CEO. The transaction is expected to finalize later this month.
The acquisition price marks a considerable decline in Lyst’s valuation, which once stood at US $700 million in 2021 during discussions of a potential initial public offering that ultimately did not take place. The decreased valuation has raised questions about the market conditions facing e-commerce companies in recent years.
Zozo’s strategic decision to acquire Lyst aligns with its broader global expansion initiatives, capitalizing on Lyst’s established presence in key markets such as the United States, United Kingdom, and Europe. The relationship is poised to blend technologies from both organizations, with Zozo committing to invest in enhancing Lyst’s AI-driven discovery features. Specifics regarding how Zozo’s sizing and fit technology will integrate with Lyst’s platform have not been disclosed.
Utahiro Inui, Executive Director at Zozo, expressed positive sentiments regarding the acquisition, saying, “Lyst has built an exceptional platform that aligns perfectly with our vision of creating more inspiring, joyful shopping experiences.” He highlighted Lyst’s industry credibility and distinctive brand voice as significant assets that position the company to redefine the fashion e-commerce landscape.
Lyst, recognized as a discovery engine for a comprehensive network of over 27,000 fashion brands and merchants, caters to a substantial customer base of around 160 million, in stark contrast to Zozo’s annual user count of 12 million. Additionally, Lyst is notable for its highly regarded Lyst Index, a quarterly compilation ranking the top fashion brands, products, and trends.
This acquisition illustrates a major collaboration between a notable Japanese e-commerce entity and an influential global fashion search platform, with both companies aiming to enhance the online fashion shopping experience through technological advancements, particularly in artificial intelligence, while also expanding their international reach.
Source: Noah Wire Services
