Virtual fitting room developer Fits.me has received EUR4.2m (US$5.3m) from its CEO and existing investors in a management buy-in.

The investment is the first phase of a EUR7m 'top-up' investment from its new chief executive James Gambrell, backed by its major investors. The management buy-in comprises new money and debt conversions and brings total investment in Fits.me to around EUR13m.

The company's backers comprise Gambrell, Conor VC, The Entrepreneurs Fund and Smartcap in addition to several existing angel investors and individual shareholders.

"We're at an exciting inflection point for the industry," said Gambrell. "Several start-ups have created working solutions and attracted brand-name, paying clients. But only a select few have been able to deliver the value that commands fee levels that justify the working capital and investment necessary to scale their business on a global scale. Those that can, including Fits.me, have successfully attracted new investment. We expect some consolidation in this highly fragmented sector, and we will seek to take advantage of that."

The investment will be used to globally scale its operations to ensure it can support a rapidly growing market and increased demands from clients.

Another Virtual fitting room company, Metail, this week raised $12m in funding led by Hong Kong based TAL Apparel, one of the world's leading garment suppliers. The investment will be used primarily to develop Metail's mobile offering, scheduled for release early next year, and to advance its user ecosystem.