A Swedish startup aiming to solve the fashion industry’s expensive return problem just secured a major vote of confidence. Lumoo has raised SEK 6 million in an angel investment round that includes backing from Anton Osika, the CEO of Lovable. This funding marks a significant milestone for the company as it uses advanced AI to change how we shop online.
The investment round values the company at approximately €550,000 and brings together a strategic group of investors from the fashion and tech sectors. Lumoo stands out because it was actually built using Lovable, the very platform created by its new lead investor. This creates a unique partnership where the technology provider is betting directly on the success of its users.
Big Backing from Tech and Fashion Leaders
The recent funding round for Lumoo is not just about the money. It represents a validation of their technology by industry experts. Anton Osika is the co-founder and CEO of Lovable, a platform known for “vibe coding” which allows users to build software through natural language prompts. His decision to invest in Lumoo highlights the potential he sees in applications built on his own infrastructure.
Osika is joined by other prominent angel investors who bring deep experience in fashion and retail. These investors understand the specific pain points of selling clothes online. They see Lumoo as a viable solution to a problem that has plagued the industry for years.
The capital injection serves two main purposes:
- Talent Acquisition: Hiring key personnel to drive development.
- Global Expansion: Moving beyond the Nordic market to reach international clients.
The founders of Lumoo are using this momentum to scale quickly. They believe that with the right team and funding, they can set a new standard for the global fashion industry. The involvement of such high-profile figures suggests that the market agrees with them.
Osika noted that Lumoo is already on a strong financial path. He stated that the startup is on track to hit €1 million in Annual Recurring Revenue (ARR) within its first year of operation. This is a rapid growth trajectory for a new company in the competitive fashion tech space.
digital fashion mannequin virtual try on artificial intelligence screen
How AI Reduces the Costly Return Problem
The core mission of Lumoo is to stop shoppers from sending clothes back. Returns are a massive financial drain on retailers. Estimates suggest that the retail industry loses billions of dollars every year due to returned items. A large portion of these returns happens because the clothes simply do not fit or look different in person than they did on a screen.
Lumoo uses artificial intelligence to create better product visualizations. Their platform offers virtual try-on capabilities and automated brand modeling. This technology allows customers to see how a garment looks on a body type similar to their own before they click buy.
Current virtual try-on technology has often been clunky or unrealistic. Lumoo claims their AI-powered tech is a notch above these older solutions. By improving the realism and accuracy of digital clothing, they help customers make better decisions.
| The Cost of Returns | Impact on Retailers |
|---|---|
| Financial Loss | Shipping, cleaning, and restocking costs eat into profit margins. |
| Inventory Lock | Merchandise is stuck in transit instead of being available for sale. |
| Environmental | Increased carbon footprint from transport and packaging waste. |
When customers feel confident about a purchase, they keep it. This simple shift can save a retailer millions. Lumoo provides the visual content production tools that brands need to give this confidence to their shoppers. The AI generates high-quality images that replace expensive physical photo shoots.
Major Brands Already Signing Up for Virtual Try-ons
The industry is taking notice of what Lumoo brings to the table. Several well-known brands in the Nordics have already signed deals with the startup. These partnerships provide immediate real-world testing grounds for Lumoo’s technology.
Current client roster includes:
- Gant: A global lifestyle brand known for American sportswear.
- Brothers: A prominent men’s fashion retailer.
- AWNR Group: A fashion group managing multiple brands.
Peter Thörngren, the CEO of Lumoo, expressed that this investment validates their rapid growth. He emphasized that building trust with these influential brands is key to their strategy. The goal is not just to be a tool but to become the industry standard for how fashion is visualized online.
For these brands, the appeal is clear. High-quality content production usually takes weeks and costs a fortune. Lumoo automates this process. Brands can generate diverse model images and try-on experiences without booking a studio or hiring models for every single item. This speed allows fashion retailers to get products online faster and react to trends instantly.
“This investment is a strong validation of the rapid growth we are experiencing and the trust we’ve built with some of the most influential brands in the Nordics.”
Peter Thörngren, CEO of Lumoo
This traction proves that the market is ready for a change. Retailers are desperate for tools that lower costs while improving the customer experience. Lumoo seems to have found the sweet spot between these two needs.
Founders Eye Global Markets with Fresh Capital
The leadership team behind Lumoo brings serious experience to the venture. The company was founded by Peter Thörngren and Henrik Skagerlind Fasth. Together, they possess over 25 years of experience in the fashion and retail industries. This deep domain knowledge helps them navigate the complex relationships between brands, suppliers, and technology.
They are not just tech enthusiasts trying to disrupt an industry they do not understand. They are insiders who know exactly where the inefficiencies lie. This background likely played a significant role in securing the trust of their investors.
The new funding will fuel their international ambitions. While they have started strong in the Nordic region, the problem of returns is global. The founders aim to export their solution to major fashion capitals in Europe and the United States.
The technology aspect is equally important. Being built on Lovable demonstrates a new era of software development. It shows that robust, enterprise-grade applications can be built faster and more efficiently using modern AI coding tools. This efficiency allows Lumoo to adapt its platform quickly based on feedback from clients like Gant.
As they look to the future, recruitment is a priority. They need to build a team that can support a global client base. The focus will be on developers who can refine the AI models and sales teams who can open doors in new markets. The founders are betting that this combination of seasoned leadership and cutting-edge tech will make them a dominant player.
The fashion industry is notoriously slow to change, but the financial pressure of returns is forcing their hand. Lumoo offers a lifeline that protects profits while modernizing the shopping experience. With cash in the bank and big names on board, the race is on to capture the market.
Summary:
Lumoo has secured SEK 6 million in funding from investors including Lovable CEO Anton Osika. The Swedish startup uses AI to improve online fashion visualization and reduce returns. With major clients like Gant already on board and a projected €1M ARR, the founders plan to use the capital for international expansion and team growth. This investment highlights the potential of software built on the Lovable platform to solve real-world industry problems.
What do you think about AI changing how we try on clothes? Do you trust virtual fitting rooms? Share your thoughts in the comments below. If you are excited about sustainable fashion tech, share this story on social media using #LumooFunding.
