Otrium, the fastest growing tech company in The Netherlands, is eyeing up a unicorn status valuation after announcing a $120 million funding round.
Otrium, which was founded in 2016, is already valued at $900 million.
The fashion marketplace offers clothing retailers the chance to auction off their deadstock that would otherwise go unsold.
The Dutch startup, which has already has rolled out its service in the UK, France, Germany and Spain, is planning to use the funding to expand its marketplace in the US.
“We believe that the fashion world will see a rebalancing in the next few years, with more sales being driven by iconic items that brands sell year after year, and will be less reliant on new seasonal launches,” Otrium chief executive Milan Daniels said.
“It’s not an entirely new strategy in the fashion industry, but one that was limited to a few items and a small proportion of global fashion brands.”
Otrium, whose motto is: “all clothing should be worn”, is aiming to help the fashion industry sell more of its goods and cut down on its waste after lockdowns have left fashion retailers with more dead stock than usual.
The fashion industry produces 13 million tons of textile waste each year 95 per cent of which could be reused or recycled and has come under criticism by regulatory bodies for not doing enough to cut down on waste.
UK environmental minister Rebecca Pow said: “Major retailers and fashion brands have made strides in reducing their environmental footprint but there is more we must do.”
Fashion retailer Boohoo recently pledged to ensure all materials it uses are “more sustainable” by 2030.