USA: TheRightSize Secures $1.4m Second Round Funding
San Francisco-based TheRightSize, a profit enhancement service for multi-channel retailers, announced today it has raised $1.4m in second round funding. The round was led by Paradise Internet Capital, and includes investors from Retail Options LLP, Kristbjorg Associates, Coast Pacific Asset Management, and Series A investors. Richard Hennessy, managing director of Paradise Internet Capital, explained Paradise's strategy: "We look for companies who deliver measurable value to large clients in industries where we have strategic relationships. TheRightSize focuses on increasing the profitability of major brands in the relatively slow growth apparel industry. Our investment in TheRightSize was based on the quality of the management team, their proprietary technology, and on their vision of helping apparel retailers become more profitable through a universal sizing translator. We intend to help establish TheRightSize as the global sizing standard." Returns represent catalogue/online apparel retailers' second largest cost. A recent Ernst & Young report said fear of buying the wrong size was the single largest inhibitor for online apparel sales. Online/catalogue consumers return one of every six items they purchased because it did not fit. The growth of direct-to-consumer catalog and online apparel sales is expected to balloon the cost of fit-related returns from an estimated $12bn in 1998 to a forecasted $17bn by 2003 in the US alone. "Our mission is to improve our retail subscriber's bottom line by increasing customer satisfaction, reducing size-related returns and adding top line growth," said TheRightSize co-founder and CEO Ernesto Aguirre, who served previously as president of apparel for high-growth companies Esprit, JoeBoxer, and Perry Ellis Mens. "We intend to use this capital to integrate our service with selected US online retailers in Q4, sign major international clients, and further develop our relationships with JC Penney, Puma, Ocean Pacific, and others."
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