LONDON — Fashion marketplace Cult Mia, which specializes in eveningwear and occasionwear from around the world, has raised $2 million from H&M Group Ventures.
The investment comes a year after Cult Mia raised $3 million in seed funding from Morgan Stanley, Fuel Ventures and David Wertheimer, and will be used to expand geographically, increase the number of brands sold on the platform, and test new product categories.
Nina Briance, the platform’s founder, said she partnered with the venture capital arm of H&M because the team was aligned with her values.
“Their strategy and approach to remaking H&M into a fashion-forward business [is] underpinned by sustainable objectives. It felt aligned with everything we wanted to achieve at Cult Mia. [We are] tapping into their mega mass appeal, too,” said Briance in an interview.
An earring style from Cult Mia.
Courtesy of Cult Mia
She said that Cult Mia, where dresses range from 100 pounds to 4,200 pounds, is hoping to use the money to increase brand count; tap into smaller- and larger-sized businesses, and test new product categories such as everyday wear, childrenswear, maternity and homeware.
She also wants to help smaller brands with data analytics, influencer marketing and operational setups.
The U.S. is the fastest-growing market for Cult Mia, with 109 percent year-over-year growth. It’s followed by the Middle East with a 413 percent year-over-year increase, and the U.K., with 115 percent year-over-year increase.
Cult Mia stocks 226 brands. According to Briance, 270 labels apply to join the marketplace every month.
Each brand application is reviewed in detail, and only 10 percent of the applying brands make the cut.
The platform does not carry big, international luxury brands such as Gucci, Balenciaga or Versace, and instead focuses on brands that might be big in their respective regions or have limited international distribution.
Cult Mia specializes in curating pieces from brands from around the world.
Courtesy of Cult Mia
“When we look for medium to large businesses, we mean brands that are massive in their respective region, but haven’t figured out how to springboard internationally,” said Briance, adding that brands hold all their own inventory and dropship directly to customers using Cult Mia packaging.
Briance said she approaches Cult Mia’s pricing strategy from a value lens. “Our sweet spot for dresses is at the 800 pound mark. An embellished gown with excellent materials at that price is a big win when compared to an Oscar de la Renta dress from Net-a-porter,” she added.
Briance said she wants to keep the product assortment different from the big, first-mover sites such as Matches, Farfetch and Net-a-porter.
Pieces from Cult Mia.
Courtesy of Cult Mia
“I do see strength in pulling the brands of the moment that have maybe more buzz such as the early days of Jacquemus or Cultnaked,” she said.
She also wants to target brands that will launch with Cult Mia in an exclusive capacity, offering customers pieces and collections that are not available anywhere else.
A key market that Briance and her team have been studying with great detail is the Middle East.
“They spend twice as much as any other region, and they return basically nothing. The breadth of brands and products that are purchased is very widespread. The Middle Eastern shopper does want to stand out, and wants to be the person introducing their friend group to new brands,” she said.
“The known luxury brands are quite saturated in the region and access to unique, independent fashion is more difficult,” she added.
Cult Mia is also experiencing organic interest from Europe in regions such as Spain, Italy, France, Germany and the Nordic countries.
The marketplace was founded in 2019 by Briance, who previously held positions at Goldman Sachs, UBS, the United Nations and Moda Operandi.
H&M Group Ventures is part of the H&M Group, which invests in contemporary companies. It has previously invested in Goop and Klarna.
