LONDON — Two London-based fashion brands, clothing label Me+Em and online styling service Threads, have raised millions in funding from Highland Europe and other investors, to expand their direct-to-consumer models and build their businesses internationally.
Me+Em has raised 55 million pounds, with Highland Europe, an early investor in Matchesfashion, leading the latest investment round.
Threads Styling, meanwhile, has raised $12 million in a round also led by Highland Europe with C Ventures and participation from BVYP and TriplePoint Capital.
Me+Em, which is known for its cool, contemporary collections, and customers including the Duchess of Cambridge, said it has been notching triple-digit revenue growth globally and is “highly profitable.” The company plans to accelerate expansion in the U.S., followed by continental Europe, Australia and the Middle East.
Founded by British entrepreneur and former advertising executive Clare Hornby, the company said its mission is to give women access to “sustainable, long-lasting, contemporary luxury clothing. It must flatter and fit, while being functional with a timeless style.”
The brand’s sales are almost entirely online, although it does have pop-up shops in London. “As a digital first, data-driven business we are seeing a huge opportunity ahead of us and with Highland Europe’s expertise in this area, we can use technology to delight and serve our customers across the world even more effectively,” Hornby said.
The company said it has quadrupled its revenues over the past three years and is seeing soaring demand from “higher-spending American customers.” The U.S. is Me+Em’s fastest-growing geography, generating triple-digit revenue growth. As a result, there are plans to open stores in New York and Boston in the coming months.
The company’s model is to design the collections in-house and work with small, family-run factories that use sustainable practices. Me+Em is a member of groups including Better Cotton, as well as the Ethical Trading Initiative.
The company said more than half of the current spring collection was made from natural or recycled materials. Its trims, fabrics, samples and write-off stock are donated to art schools, colleges and charities, while it is working toward a zero-landfill policy.
Sam Brooks, partner at Highland Europe, said investors are impressed “by the strong demand coming from international customers, a testament to the brand’s global relevance and appeal. Clare is a fantastic leader, and we are thrilled to partner with her and the team.”
Highland Europe joins existing investors including Sir Charles Dunstone, the executive chairman of TalkTalk, and Venrex Investment Management, which was an early backer of the makeup brand Charlotte Tilbury, Not on the High Street and fashion shopping app Lyst.
Earlier this year, Venrex teamed with the British Fashion Council to create a new funding pipeline for the council’s education and talent programs.
The new fund, Venrex BFC Fashion I, is looking to support “nontraditional” fashion businesses that have “strong creative, innovative and commercial credentials,” with seed, early stage or growth stage funding. These will be clothing, tech- or sustainability-focused businesses in the wider fashion firmament, rather than pure clothing or accessories labels.
Threads Styling said it plans to use the new funds to continue expanding its current product offering, allowing it “to service clients at 360 degrees,” while amplifying its new, curated e-commerce website and dedicated Live Shopping events.
The latest round of funding is part of a two-pronged strategy that will see Threads give customers an opportunity to invest in the company through a crowdfunding campaign with Crowdcube.
Founded in 2009 by Sophie Hill, Threads Styling is a global, chat-based shopping platform on social media.
Hill, who is also chief executive officer of Threads, said the landscape of luxury is changing.
“Our experience has proven that combining relatable inspiration with a convenient client-first service has answered the needs of the ‘new gen’ luxury shopper. This new round of investment will drive further expansion of our model through our new e-commerce platform and live shopping events on social media. We’re excited to formally welcome the next generation of investors into the Threads family.”