Purple Dot, an e-commerce startup, has raised 4,000,000 dollars in funding early-stage led by U.S.-based Unusual ventures, TechCrunch reported the news. The U.K.-based company uses a pre-order and waitlist platform to allow fashion brands to produce only the quantity they need to reduce waste. Purple Dot is also supported by Moxxie Ventures and Connect Ventures. Paul Forster, co-founder of Indeed, also has his family office.
Madeline Parra and John Talbott founded the company in 2019. They claim to be the only platform that allows companies to sell inventory sooner to maximize their sales.
Parra stated that selling earlier opens up new opportunities for brands to capture sales. Legacy mindsets and technology assume that inventory is required to sell it. “Purple Dot allows you to sell at any time, as selling and shipping can occur simultaneously. This is our “A-ha” moment with brand partners. A dedicated approach is essential to achieving a sell-earlier strategy. It must address both the customer experience and internal tooling.”
Rachel Starr, Unusual Ventures, stated that Purple Dot was more than just an ecommerce enabler. “They are changing the way supply chains are managed, as well as how brands sell. We believe that pre-orders or waitlists will be key to the future of online shopping.”
CBInsights last year reported that fashion tech was one of the fastest growing segments of the fashion industry. Platforms like Purple Dot, which promote sustainability in the fashion industry are attractive targets for investors.