Sydney online tailors, InStitchu, are set to expand overseas after securing venture capital funding deal with Aura capital.
The minority stake values the startup at $2.5 million after it was founded in 2012 by two university students, Robin McGowan and James Wakefield, both 26-years-old.
McGowan told ARN they started the business as two uni students about to enter the workforce, who were finding it expensive building up their wardrobe.
“We realised there was high quality menswear available overseas and through why not let guys have access to this through a website,” he said.
“When we first started we were selling to our mates, friends and family - who never would buy it.
“But once we optimised our website we started selling all over Australia, to the UK, Europe, US and Asia.”
The online customisation and measuring tool puts an end to over-priced, ill-fitting suits.
Australians have already designed more than 50,000 suits using InStitchu’s online tools.
McGowan said he was excited to be teaming up with Aura Capital and their investment arm (Disruptive Capital) which gave them the resources to continue expanding.
“We are looking to become one of the leaders in vertical e-commerce space,” he said.
“It means we have got the backing to put forward some of the ideas we have got for the future.
“We are looking at expanding into some overseas markets, possibly some acquisitions, that’s about all I can say at the moment. It’s exciting.
“James and I had been thinking about this for a while. We had been waiting for the right moment and the right people to come along and Aura and Disruptive ticked all the boxes.”
The company now has an office with seven staff in Sydney, while all their products manufactured in Shanghai.
McGowan said he chose to partner with Disruptive Capital due to their experience in scaling online businesses.
“We look forward to working with Calvin Ng, Adir Shiffman, and the rest of the Disruptive team to make InStitchu the number one place for tailored, affordable suits and business attire,” he said.
“While the bootstrapped phase of the business has been exciting, we’re now looking forward to having the capital and expertise to grow our local team, continue to innovate, make strategic acquisitions, and expand internationally.
“We have a number of exciting announcements to make in the coming months, so watch this space!”
Disruptive capital director, Calvin Ng, said InStitchu was the market leader with unique intellectual property powering its products, customer satisfaction and engagement,” he said.
“We see a huge market opportunity and look forward to working with the founders to take InStitchu to the next level.”