Germany’s StyleLounge, which operates a metasearch engine for clothing and lifestyle products, has raised a Series A round of funding.
Backing comes from TA Ventures, Axivate Capital, ASTUTIA Ventures, a number of family offices and Felix Jahn, founder of Home24 and former managing director of Rocket Internet, who StyleLounge also counts as a co-founder.
Meanwhile, the size of the round is described as a “mid-seven-figure euro amount”. However, TechCrunch understands the figure is actually €2.3 million, and that the additional capital will be used for further European expansion.
Along with Germany — where StyleLounge already works with 100+ partners and is able to provide an assortment of over 1.2 million products via its metasearch engine that lets you find and compare prices for clothing and other lifestyle products — the Hamburg-based startup recently launched in France and Netherlands. It plans to add another five European countries by the end of the year.
StyleLounge founder and CEO, Johannes Heinen, tells me that the company’s metasearch engine aims to stop shoppers feeling overwhelmed by the variety of clothing and lifestyle product options that the Internet affords.
It does this by solving 3 key problems of online shopping: price comparison across all stores (including vouchers, discounts, shipping and returns); availability check across all stores (for all sizes and colours); and by featuring products from more than 100 stores, meaning that there is no need to browse an individual retailer’s site.
The startup makes money by receiving a kickback for the leads its metasearch engine generates. “We work closely with our partner shops to ensure high quality traffic and the best possible campaign performance. Our partners pay us a cost-per-click (CPC) that is optimized on the basis of the traffic performance that we deliver,” explains Heinen.