Wednesday, November 11, 2015

DrexCode raises €556k in Funding from Innogest SGR, Ligur Capital, LVenture Group and Fashion 22 for the European Expansion

Rome, November 13, 2015 - Drexcode, a Milan, Italy-based fashion rental platform, offering rental outfits and accessories from the latest high fashion collections, just raised €556k in the second tranche of a round close to €1M announced at the end of 2014. The investment came from Innogest SGR (€180k), the leading venture capital fund in Italy, Ligur Capital (€180k) the venture capital fund of the Liguria Region, €70k from LVenture Group, a holding company listed on the Italian Stock Exchange that operates in the field of venture capital and €126k from Fashion 22, the vehicle of the business angel group Italian Angels for Growth (IAG) led by Paola Bonomo and Paolo Marzetti). Of this amount €500k will be paid in the form of a convertible loan while the rest in the form of a capital increase.

Founded in June 2014 by its CEO Federica Storace and Head of Sales, Valeria Cambrea, two women with a decade of marketing experience in multinational corporations like Danone, Drexcode is a web luxury boutique where you can rent a dress or accessory of your dreams, all of high-end brand. A formula that works in Italy, even if placed more firmly on the high-end segment than its competitors.
Chairman of the board of Drexcode is Enrico Mambelli, senior advisor to international private equity funds for acquisitions in the luxury space and former CEO of Gianfranco Ferré in Milan and Cerruti 1881 in Paris. Among the shareholders of Drexcode there is also Michela Piva, international expert of the luxury fashion industry and ex CEO of important brands of the luxury market.

Drexcode is a web fashion dress rental boutique offering outfits and accessories from the latest high fashion collections, which became part of the portfolio LVenture Group in 2014, and has created an online platform for rental of luxury clothes, which offers a portfolio of high-end clothes and accessories from the latest collections of the most famous fashion brands.

"In 2014 the fashion industry increased by 2.7% in Italy, with overall revenues of €52bn and in 2015 it is expected a further increase of 3.8%" - said Luigi Capello CEO of LVenture Group - "at the same time startups in fashion space are reaching interesting results on the international scene and it is in this area that operates YOOX, the only Italian unicorn, i.e. a company with more than €1bn valuation. This is why we are particularly pleased to have invested in Drexcode, which has no significant competitors in Italy and offers a service at competitive prices and with great potential."

Drexcode offers various brand, from Alberta Ferretti to Giambattista Valli, from Zac Posen to Moschino, and only of the latest collections, that you can splurge for a special evening or event by paying only 10-15% of the price tag. To receive the dress simply register and choose the size, with the help of an online guide. You can also rent "without obligation": in this case you will pay only €20 for the trial, which will be deducted if you finalize. If you are not sure about your size, you may try a second dress for free, and if needed use of a tailoring service. At the end of the rental, which lasts four days, even the withdrawal of the dress is included in the price.
Drexcode's typical customer is a woman who has a lot of passion and competence for fashion and has a very active social life, so that she must be careful never to wear the same dress twice. In reality it is a win-win business for the brand, since Drexcode brings clothes in the right locations. The jaws have realized the importance of experiential marketing. And Drexcode is just investing in this. 

The company intends to use the raised funds to grow the marketing and development team to expand the business in Italy and abroad.