Japan-based e-commerce powerhouse Zozo, the operator of the popular online platform Zozotown, has announced its acquisition of the fashion technology and e-commerce company Lyst for US $ 154 million. The deal, revealed on Wednesday by both companies, is a strategic move for Zozo to accelerate its global expansion and transform fashion discovery through advanced artificial intelligence.
According to a joint statement, Lyst will become a wholly-owned subsidiary of Zozo, yet will continue to operate as an independent business based in London. Emma McFerran will continue to serve as Lyst’s CEO. It is anticipated that the deal will be completed later this month.
The acquisition price of US $ 154 million marks a significant decrease in Lyst’s valuation compared to its US $ 700 million valuation in 2021, when the company was considering a potential initial public offering that ultimately did not materialise.
Zozo’s decision to acquire Lyst is consistent with its broader strategy to grow globally, using Lyst’s strong presence in significant nations like the US, UK, and Europe. Both businesses will combine their technologies as part of the cooperation, and Zozo has committed to investing in improving Lyst’s AI-powered discovery capabilities. Zozo’s sizing and fit technology is also anticipated to help Lyst, though specifics of this connection were not made public.
Utahiro Inui, Executive Director at Zozo, expressed enthusiasm about the acquisition, stating that Lyst had built an exceptional platform that aligned perfectly with their vision of creating more inspiring, joyful shopping experiences. He added that Lyst’s industry credibility and unique brand voice, coupled with market-leading technology and scale, meant they were uniquely positioned to redefine the space.
As a discovery engine for a vast network of 27,000 fashion brands and merchants, Lyst today serves a sizable 160 million customers. Zozo, in contrast, has 12 million users a year. In addition, Lyst is well-known for creating the renowned Lyst Index, a quarterly ranking of the top fashion brands, goods, and trends.
This acquisition signifies a strategic alliance between a major Japanese e-commerce player and a globally recognized fashion search platform, with the shared goal of leveraging technology, particularly AI, to enhance the online fashion shopping experience and expand their respective global footprints.
