Hey there, fashion lovers and business enthusiasts! Big news dropped on April 9, 2025—Lyst, the U.K.-based high-end fashion marketplace once valued at a whopping $700 million, has been snapped up by Japan’s Zozo for just $154 million in cash.
If that sounds like a steep drop, you’re not wrong. Let’s unpack what’s happening here and why this deal matters.
What’s Lyst, and Who’s Zozo?
For those new to the scene, Lyst is like a treasure chest for fashion fans. It’s an online marketplace that brings together 27,000 brands, think Prada, Gucci, and even big retailers like Harrods serving shoppers in 190 markets. About 30% of its sales come from the U.S., 24% from the U.K., and 34% from Europe.
Back in 2021, during the e-commerce boom sparked by the pandemic, Lyst raised $85 million and hit that $700 million valuation. Investors like Fidelity and Accel were all in, and there was even talk of an IPO.
Zozo, the buyer, is a Japanese e-commerce giant with its own fashion brands like Zozotown and Wear by Zozo. Fun fact is that its founder, Yusaku Maezawa, once held the record for the most retweeted tweet by promising to give away 100 million yen.
Now, Zozo’s adding Lyst to its portfolio but plans to keep it running independently under its current CEO, Emma McFerran.
Why the Low Price Tag?
So, why did Lyst sell for less than a quarter of its peak value? It’s not just about fashion trends fading and it’s a sign of tough times in e-commerce.
Three big challenges hit Lyst hard:
- U.S. Tariff Hikes: With new tariffs looming, global trade feels shaky. Lyst, based in London, relies on U.S. shoppers for nearly a third of its revenue, and that uncertainty stings.
- Fierce Competition: Lyst isn’t just battling other fashion platforms—it’s up against giants like Amazon and Temu, who dominate online shopping.
- AI Obsession: Investors are pouring cash into artificial intelligence, leaving companies like Lyst under pressure to either jump on the AI train or prove they can grow just as fast without it.
Lyst and Zozo are nodding to this trend, promising to “transform the future of fashion discovery through AI and technology.” Sounds flashy, but they haven’t shared the details yet. Stay tuned!
A Look at Lyst’s Numbers
Lyst’s latest financials tell a mixed story. For the year ending March 31, 2024, it pulled in £50.1 million (about $64 million) in revenue, pretty flat compared to £50 million the year before.
Losses shrank from £23.7 million to £510,000, and it even posted a small operating profit of £443,000. Progress? Sure. Enough to keep investors happy? Maybe not.
The company boasts 160 million annual unique users, but that includes browsers, not just buyers, so it’s tricky to gauge how many are actually spending.
Lyst’s not alone in this struggle. The fashion e-commerce world has been rocky since the pandemic highs faded. Farfetch, another big name, has also taken a dive.
After COVID-19, shoppers went back to stores, and the IPO window that Lyst hoped to leap through slammed shut. Meanwhile, investors shifted their focus to AI startups, leaving e-commerce players scrambling.
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