H&M invests in AI ecommerce site

London-based menswear ecommerce startup Thread has set out to make
styling much easier for male consumers and just received 3 million
dollars from H&M to do so. The H&M Group’s investment arm, H&M CO:LAB
has funded many innovative fashion startups that focus on
technological or sustainable initiatives, such as Aday and Worn
Again.

Thread is inventive in that the ecommerce startup uses Artificial
Intelligence to provide styling and product recommendations to its
customers. The company was founded in London in 2012 and has already
gained a consumer base of over 1 million users ranging in age from
their late 20s to early 40s, 25 percent of which purchase all of their
clothing on Thread.

The retailer’s goal is to prevent shoppers from feeling overwhelmed
by too many options and to make shopping an easier process. It uses a
combination of human stylist and algorithms to provide personalized
recommendations. Shoppers share their style, size, budget and
preferred brands, and the more time shoppers spend with the
technology, the more the AI learns their interests.

In a press release, Thread announced that it raised 22 million
dollars in Series B funding, including H&M’s investment. Balderton
Capital, Beringea and Forward Partners also contributed. Thread’s
total funding is now over 40 million dollars. The ecommerce retailer
shared that the new funding will go towards expanding its AI
initiatives and developing brand awareness.