As online retail moves from the desktop Internet to mobile, the time for mobile pure players is coming.
Fidelity Investments has led a $65 million investment in Spring, a three-year-old e-commerce startup that sells clothes from 2,000 clothing brands through its mobile app and website. Spring has now raised around $100 million in total.
Existing investors Groupe Arnault, Thrive Capital and Box Group also put new money into the company. Groupe Arnault is the investment arm of luxury fashion conglomerate LVMH, while Box Group is the venture firm started by Spring co-founder and chairman David Tisch.
The company expects 2017 gross sales well north of $100 million. Spring generates revenue by taking, on average, a cut of between 15 percent and 20 percent of each order.
Back in 2015, TechCrunch called Spring a “shoppable Instagram”:
Spring works by integrating directly with fashion brands, who users can then follow on the platform to see their new posts. Each post has an item of clothing in it, complete with scrollable pictures, a price, and a description.
This is similar to what Zalando is doing with its mobile social shopping app Fleek.
Spring is a digital shopping destination where people can discover amazing products and buy them directly from their favorite brands in a single-cart experience.
This is not surprising. Spring was a launch partner of Facebook’s messenger bots:
When Facebook launched the bot platform on top of Messenger we had a look at the Spring shopping bot and were not impressed.
The iMessage app looks like a far better idea than Spring’s Facebook bot last year.