US-based on-demand printed apparel provider HugePod secured $40m on Wednesday in a series B round led by video-based social media platform Joyy as the medium becomes a viable target for startup cash.
The round was filled out by Engage Capital, Source Code Capital and ZhenFund. The company had raised undisclosed amounts from Source Code Capital and ZhenFund in a 2019 pre-series A round and in an Engage Capital-led series A later that year.
Founded in Hong Kong, HugePod provides a wholesale customisable printing service that lets customers personalise clothes using a 3D mock-up, and then delivers the tailored product to them. It will use proceeds from the round to expand its business in the US market.
Demand is being driven in part by creator-focused platforms like Shopify or Patreon, which host a growing number of micro-brands, content creators, designers and other entrepreneurs who can set up an online shop to produce and sell merchandise including apparel items.
Marketing for personalised merchandise is also being driven by younger demographics, particularly on platforms like TikTok where anyone with a large enough following can start to sell gear. The covid-19 pandemic has played its part, too, with a rise in demand for customised face coverings.
The global on-demand printing market for T-shirts alone is projected to grow to $7.57bn by 2028, representing an annual growth rate of 9.7% between 2021 and 2028.
Printify, a HugePod peer based in Latvia, raised $50m last month in a series A round co-led by fashion retailer H&M, conglomerate Virgin Group and venture capital firm Index Ventures at a valuation of over $300m post-money.
US-based counterpart Printful had received an even larger capital injection last year, bringing in $130m in equity funding from private equity firm Bregal Sagemount in March at a valuation exceeding $1bn. On-demand manufacturer Gooten secured $15m in equity and debt financing nine months later.
HugePod’s chief marketing officer, Ying Dai, said: “With this new funding, we will expand our presence in the US to meet the needs of both current and aspiring small and medium-sized business owners as well as creative individuals who want to turn their ideas into reality.
“Having the commitment from Joyy and the continued support from investors from our previous funding rounds provides us with significant resources to help keep costs down for our partners and customers, while also maintaining a high level of quality print-on-demand service so they can efficiently drive profitability.”
While still in its early days, 3D printing is likely to make its mark on the on-demand merchandise sector when it becomes more widely available for commercial purposes.
The space has seen a decent amount of investment over the past year, with chipmaker Intel’s corporate venturing arm, Intel Capital, leading a $19.3m series A round for Fabric8, a developer of non-thermal metal 3D printing technology, in July 2021.
TDK Ventures, a subsidiary of electronics manufacturer TDK, was also among the series A investors, as were tool manufacturer Stanley Black & Decker’s Stanley Ventures subsidiary and energy management and automation technology producer Schneider Electric’s SE Ventures unit.
Photo courtesy of HugePod.
