Dutch online outlet Otrium receives 7 million EUR from Index Ventures

Index Ventures, the venture capital firm backing Asos, Farfetch and Net-a-Porter, has invested 7 million euros (approximately 7.8 million US dollars or 6 million pounds) in Otrium, a Dutch marketplace where brands can sell their unsold stock with discounts of up to 75 percent. In addition, Index partner Danny Rimer is set to join Otrium’s board of directors.

This is not the first time that the platform created by Milan Daniels and Max Lijnstra receives a capital injection. Since its inception, in 2016, the company has been backed by several investors, including Fred Gehring and Ludo Onnink, former CEO and CFO of Tommy Hilfiger, respectively.

Otrium partners up with over 100 fashion brands, including Vans, Pepe Jeans and G-Star Raw, allowing them to open an online outlet with minimal effort as the company takes responsibility for the storage, sale and shipping of the items. All fashion brands have to do is select which items in their inventory they want to sell. Currently, more than 600,000 people are subscribed to the platform.

Otrium is present in most of Europe and intends to use the money to expand and strengthen its international presence. “We’re currently expanding our activities in the most promising markets: Germany, UK, Denmark and Sweden. After that, we’ll keep an eye open for new markets to enter”, the company wrote in an email to FashionUnited.

Picture: courtesy of Otrium