From Idea To $1.6 Billion Company In 6 Years

Read time: 3 minutes

Good morning! It's Thursday, June 29th - Today, we’re unpacking the story of StitchFix, a business that gave everyone access to a personal stylist. In just 6 years, Katrina took this company from an idea to a business worth $1.6B valuation at IPO.

Let’s dig in!

THE FEATURE

From Idea To $1.6 Billion Company In 6 Years

Katrina Lake’s company generated $2.1 billion in revenue last year.

And while her company has experienced challenges throughout the pandemic, her ability to grow a styling service to over 3,795,000 clients earns her a deep dive.

So, What’s the Business?

Katrina is the visionary founder of Stitch Fix – an ingenious online personal styling service, which she founded in 2011.

Just 6 years later, in 2017, she took the company public at a $1.6B valuation.

It’s a simple concept - they set you up with a stylist to help refine your style, and every 1-3 months they send you clothes tailored to your specifications.

Essentially anyone can get access to a stylist, which has enabled them to tap into an affluent market, predominantly in the United States.

The Numbers: Stitch Fix's scale is impressive.

2019: $1,577,000,000

2020: $1,580,000,000

2021: $2,100,000,000

2022: $2,100,000,000

Katrina holds a substantial stake in the business – initially bootstrapped, it later raised capital from top-tier investors including Benchmark and Lightspeed.

The Story:

1. Katrina, a Harvard Business School graduate, was always intrigued by the amalgamation of technology and fashion.

2. Her eureka moment came when she realized that the retail industry could use data-driven personalization. She set out with a blend of algorithms and human stylists to create a tailored shopping experience for customers.

3. In 2011, with mere savings, she founded Stitch Fix. The company sent personalized boxes of clothes to customers, who would keep what they loved and send back the rest.

4. Fast forward to 2017, Katrina took Stitch Fix public, becoming the youngest female founder to do so.

5. The global pandemic in 2020 posed challenges. But Stitch Fix adapted by bolstering its online presence, curating work-from-home wear, and scaling its algorithms.

The How:

Data-Spun Tailoring – The magic of Stitch Fix lies in its perfect stitching of technology with human intuition.

Customers receive boxes curated just for them. And this personal touch, coupled with the convenience of trying clothes at home, created a buzz.

Democratizing services reserved for the wealthy - Uber gave the everyday person access to private car services. StitchFix did the very same for affluent Americans seeking their own stylist.