It’s been a crazy bunch of months for Bombfell, the subscription clothing startup which aims to provide quality, fashionable clothing to men on a monthly basis. Since completing the 500 Startups accelerator last year, the company has moved to New York and seen six consecutive months of double-digit revenue growth. And now it’s raised a seed round to continue that momentum.
Bombfell lets men subscribe to a service that sends them a new shirt, pair of jeans, or other piece of fashionable, brand-name clothing at a discounted cost of just $69 a month. The startup works not only to find something that they might not have picked for themselves, but also something that will fit well, taking into account their measurements and the variable sizing of different brands.
It’s a value proposition that has resonated with consumers, as Bombfell has sent thousands of shipments every month. As a result, the company has seen double-digit revenue growth over the last six consecutive months. But the most surprising stat might be the company’s churn rate, which is below 3 percent.
To expand further and capture more of the market for lazy, unfashionable men, Bombfell has raised a seed round of $730,000. The funding comes from investors that include Great Oaks VC, Jeff Fluhr, 500 Startups, SOS Ventures, Romulus Capital, David Shen Ventures, Andrew Reis, Daniel Wallace, Diane Loviglio, Galen Ward, Gilman Tolle, Kavin Stewart, Sze-jun Tsai. In addition to the funding, the company has added Bobbi Brown Cosmetics co-founder Ken Landis and JamLegend co-founder Andrew Lee to its board of advisors.
Bombfell has also expanded the number of options available to subscribers. While it launched with a $69 a month subscription, it’s recently added new pricing tiers to allow its users to get more expensive items like sweaters and jackets. It now has a $129 per month option, which has more premium brands of clothing and increased variety. It also has a $199 a month tier which includes high-quality brands and outerwear items. The addition of new subscription tiers not only provides more flexibility to its users, but it will also increase revenues — and margins — associated with its monthly plans.
Because Bombfell wants its users to stick around, it also needs to provide a high-quality experience. That means doing a good job of making sure users get clothes that they’ll wear — and those that fit. “Our return rate is at the low end of the e-commerce average,” co-founder Bernie Yoo told me by phone. “That’s the crux of what we do… If that’s high, then the business doesn’t work.”
At the same time, the increase in the number of subscribers means bigger orders, and hence, better discounts from vendors. While it’s doing thousands of shipments each month, the predictable nature of the e-commerce subscription model means that the company has a limited amount of inventory, because it can do a pretty good job of predicting monthly shipment demand.
Bombfell moved to New York recently, to be closer to its suppliers. The company was founded by a group of execs with a background in fashion and technology, with experience at Saks Fifth Avenue, MTV, Microsoft, Theory, Morgan Stanley, Jones, Lolapps, Sean John, and Goldman Sachs.