Fashion marketplace Lyst, valued at $700M, acquired by Japan’s Zozo for $154M

“The Ever-Changing World of Fashion Startups: Lyst’s Evolution from $700M to $154M Acquisition by Zozo”

In the fast-paced realm of fashion startups, trends come and go, just like in the fashion industry itself. Lyst, a high-end fashion marketplace that was once valued at a staggering $700 million, has recently been acquired by Zozo, a prominent Japan-based fashion and e-commerce giant, for just $154 million in cash.

Zozo, known for its brands Wear by Zozo, Zozotown, and Zozosuit, made headlines not only for its acquisition of Lyst but also for its founder Yusaku Maezawa, who gained fame for having the most retweeted tweet promising a cash giveaway.

Despite the significant drop in valuation, Zozo plans to keep Lyst as a standalone business with its current CEO, Emma McFerran, at the helm. The acquisition comes at a time when the e-commerce industry is facing challenges from global trade uncertainties, fierce competition, and the growing demand for AI incorporation.

With a strong foothold in the UK and an international presence, Lyst boasts a wide range of fashion brands on its platform, catering to customers in 190 markets. The company’s success during the COVID-19 pandemic, followed by a decline post-pandemic, has been a rollercoaster ride, with a recent layoff affecting 25% of its staff.

Despite recording a steady revenue and narrowing losses, Lyst’s future under Zozo’s ownership raises questions about its ability to thrive in the competitive fashion e-commerce landscape. As both companies aim to revolutionize fashion discovery through AI and technology, the merger holds the potential to reshape the industry dynamics.