Style Arcade is a merchandise planning decision engine that makes recommendations to product buyers/planners on what (and how much) to buy, boost and markdown, combined with rich product imagery to aid in faster and more accurate decision making.

Retailers have immense pressure on profits as the industry undergoes an evolution. Back office teams in retailers are struggling with old-fashioned, manual processes. This global market is notorious for linearly scaling headcount with revenue due to operating with Excel and generic reporting and analytics tools. Many retailers are struggling with low margins, huge overheads and a large head office workforce.
Currently the industry solves their merchandising problems with high headcount and Excel. As a result of the lack of sophistication, huge reliance on human capital, highly manual environment, the industry is suffering from a significant profit loss.

Style Arcade wants to ensure that all retailers operate at maximum sophistication and profitability.

The main outcome is increasing profit and Style Arcade does this in 3 ways: (a) significant automation of the buying & planning trading & reporting process; (b) profit upside through algorithmic identification of profit risks and opportunities as well as the actions to be taken on these; and (c) enabling real-time communications and trade between Brands and Marketplaces

Why Jelix invested

Style Arcade has an Innovative product and vision in bringing game changing sophistication to the famously traditional retail sector (both bricks & mortar and ecommerce):
● The retail industry is notorious for linearly scaling headcount with revenue due to operating with Excel and generic reporting and analytics tools.
● Style Arcade technology provides a decision making engine that makes recommendations to product buyers/planners on what (and how much) to buy, boost and markdown, combined with rich product imagery to aid in faster and more accurate decisions.
● Future product roadmap will ensure a huge step change in retail sophistication, allowing all retailers to operate to maximum profitability.
● State of the art technology allowing retailers to automate and visualise the product management and planning process

World-class team with deep expertise in merchandise planning and technology
● CEO has extensive experience building the merchandise planning function in large enterprise businesses.
● Talented team of engineers with strong technical capabilities

Significant traction indicates that product-market fit has been achieved
● Launched existing product in July 18 and have a significant number of paying customers.
● Consistent growth in recurring revenue. A subscription model business that has produced strong and smooth recurring revenue growth.
● Case studies with proven profit impact and ROI.

High demand and in a global market
● An effective and sticky solution for an acute problem with a strong ‘front of the pack’ advantage.
● Software applicable across 5 retail vertical industries (already have customers in 3 of these).
● A huge and growing addressable market est. at ~$9 trillion and the total size at estimated penetration of ~2%= $122M ARR
● Initial focus has been on the fashion industry but they have naturally acquired customers in homewares, toys and gaming.

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