Kleep secures €1.8m to reduce size-related returns in online retail

Startup Kleep will use generative AI to minimise retail returns linked to sizing issues
An undated image illustrating Kleep user interface. — Kleep
An undated image illustrating Kleep user interface. — Kleep

Kleep, a generative AI startup in Paris, secured an impressive €1.8 million in funding to fuel its ambitious mission of revolutionizing the online shopping landscape.

A substantial challenge faced by online retailers is the high rate of returns, with one in three garments bought online being sent back. This trend costs retailers a staggering €30 billion globally each year, including €800 million in France alone. Additionally, it contributes to an environmental toll of 35 million tons of greenhouse gases annually worldwide.

Kleep's innovative solution to size issues

At the core of Kleep's mission is addressing the size and fit issues that contribute significantly to the high return rates in online fashion. Leveraging Generative AI, Kleep has developed a product discovery platform that aims to cut size-related returns by up to 50%. This not only benefits retailers financially but also reduces the environmental impact associated with returns.

By implementing Kleep's Generative AI-based platform, brands can potentially boost their conversion rates by 15 to 25%. The key lies in enhancing customers' confidence and satisfaction with their purchases, ultimately reshaping the online shopping experience.

Industry recognition and rapid growth

Kleep's innovative approach has garnered significant interest from key players in the fashion and e-commerce sectors. The startup is already on track to serve 20 active clients within a year of its launch and is poised to announce a strategic contract with a leading French retailer that attracts over 50 million visitors annually.

Backing from fashion and retail heavyweights

The recent funding round received support from notable figures in the fashion and retail industries, including David Dayan, co-founder of Showroomprivé.

The funding injection will be directed towards further enhancing Kleep's product discovery platform, to replicate the interactive and personalised assistance typically provided by in-store sales representatives through AI.