Fashion start-up Moda Operandi raises USD 36m

The New York-based start-up has raised $36 million from venture capital firm RRE Ventures, and several strategic investors, including IMG and LVMH Moët Hennessy Louis Vuitton. Previous investors New Enterprise Associates, New Atlantic Ventures

and Conde Nast are also reported to have participated in this financing, according to local media.

Moda Operandi was launched in 2010 by Áslaug Magnúsdóttir, a former Gilt Group executive, and Lauren Santo Domingo, a Vogue contributing editor and member of the powerful Santo Domingo family.

The products, which are usually showcased before they hit the department store shelves, generally arrive 6 to 10 weeks later. Moda Operandi has generated a lot of interest in making full collections available for viewing online in real time and plans to build the business internationally.

The e-tailer offers its users early access to designers’ upcoming merchandise and charges full prices. Half of the full price is paid by shoppers upon purchase and the remainder when the item is received.

Online sales in the fashion industry in United States are expected to grow more than 50 percent to $304 billion in the next three years, unveils the ‘New York Deals Book’.