AR/VR-AI apparel eCommerce SaaS solution reducing returns and increasing sales

Security Type
Crowd Note
Fashion & Accessories
Min Investment
New York, NY
Offering Date
November 13, 2020
Expected Close Date
February 23, 2021
Target Raise
Deal Notes

Discount: 20%

Interest Rate: 5%

Note Term: 24 months

Company Description

AR/VR-AI apparel eCommerce SaaS solution reducing returns and increasing salesOnline  apparel sales ($95B, USA) are increasing at 10.8% annually. This trend has accelerated further post-pandemic due to the need for touch-less commerce.Apparel eCommerce is beset with two large and costly problems; high returns and low conversion resulting in ~$19B in waste cost and ~$16B in lost sales (2020). As online accelerates, so do the problems.Online shoppers return 30-40% of apparel purchases and buy only 2-3% of what they browse. This happens because they cannot see how the clothing fits and looks on themselves. It’s the opposite of an in-store experience, where they try on clothing and view it in a mirror, resulting in low returns (~9%) and high conversion (~25%).Perfitly’s comprehensive end-to-end (ETE) solution mimics the in-store process in full detail, creating a true ‘try before you buy’ experience online by showing the shopper in a recommended size and letting them personalize the choice by sizing up/down. The results have been game-changing. At recent large pilot-trials at a top-10 retailer, the in-store selection by shoppers matched their Perfitly enabled online selection by >79%. These results cross-validated the results at Perfitly’s client deployments where returns reduced by 2/3 and conversion increased by 80%.The performance of the platform continues to raise Perfitly’s profile. We currently have 6 deployments at retailers ranging from small to ‘mega’. Several others are in various stages of early discussions to deployment planning. Perfitly has accomplished the ‘try before you buy’ visualization through fusing complex leading-edge AR/VR-AI technologies into a fully home-based solution. The functionality is delivered as a ‘try it on’ button on the client retailer's website/app as an accurate, fully scalable, cloud-based SaaS solution with sub-second response times… a fun, quick and easy experience. 

Key Deal Facts

Deployed at a top-10 (USA) retailer's select site
Client deployment achieved a 64% reduction in returns and an 80% increase in conversion on their eCommerce site
2019 NRF Expo (700 international exhibitors, 40,000 visitors) rated "Best in Show" across multiple top rankings (Top 3, 5, 7)
Launched smartphone-based app for body replica (“avatar”) creation, minimizing the human error and subjectivity that may stem from self-reported measurements
Winner "Most Fundable Company" competition, Pepperdine Graziadio Business School national contest. Through rigorous multistage diligence, from among 4,500+ early-stage applicants (Oct. 15, 2020)

Use of Proceeds

  • Tech Optimization
  • Client Onboarding
  • Sales & Marketing
  • Operations

Management Team / Advisory Board Bios

Dave Sharma
Co-Founder / CEO
40+ years leading large operations in manufacturing, technology. Founded, established, divested and acquired several businesses in the TTA-Transitair group of companies. Led international consortia in large infrastructure projects and workforces of several thousands. Education: MBA, IIT Chicago; B. Tech, Indian Railways Institute of Eng. 

Kash Vyas
Co-Founder / CTO
20+ years delivering technology based business solutions in retail, online media, digital advertising and finance at director level positions. Comcast, Amazon Web Services, Akamai, Goldman Sachs. Director of Technology at Education: BS, Mechanical Engineering, Rensselaer Polytechnic Institute

Raghav Sharma
Co-Founder / Advisor
20+ years in strategy consulting and M&A. Established and divested technology companies. McKinsey & Co, JPMorgan, GuideVine Technologies, Education: AB, Eng & Econ, Brown Univ; MBA, Wharton School of Business

Deal Notes

Discount: 20%

Interest Rate: 5%

Note Term: 24 months

Amount Raised : $680,924
Reveal the Score by Voting
Additional ratings from other users are needed to determine a viable CrowdScore for this deal.
The "CrowdScore" for this deal is determined by user ratings and other factors using our proprietary algorithm.
The overall viability and scalability of the business concept as well as the ability to drive the concept to profitability over time.
Business Idea
The progress made thus far in demonstrating that the business has viability, a customer base or other business traction.
Business Traction
The experience of the management team in running, scaling and/or exiting a business that required similar skills to execute the business plan.
Management Team
The value of the company compared to similar companies raising money from investors.

Security Description

A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.

Research Reports

No reports have been submitted

Become a Reporter