There is no doubt that Ecomid has had a busy period since its launch in 2023. The co-founders, a team of six people, quickly set a goal to solve one of the most costly problems in e-commerce: soaring returns. Today, the company announced that it is raising $17 million, equivalent to approximately 160 million Swedish kronor, in what is described as Europe's largest seed round in fashion tech.
The energy and motivation are truly at their peak. This backing gives us the conditions to improve global shopping, which feels incredibly inspiring. One of the world’s best fashion tech teams also feels a well-deserved pride,” says CEO Oscar Rundqvist.
Investor pressure has been high, and the company has even had to decline capital. The new round is led by British Systemiq Capital, but is also backed by the Regeneration.VC fund, where actor and climate advocate Leonardo DiCaprio is an advisor and investor.
However, the company does not want to disclose exactly what the entire company is worth after the capital injection.
We do not comment on the exact valuation. We chose to raise such a large round for two reasons: firstly because there was very high interest from investors, and secondly because the timing is perfect,” explains Oscar Rundqvist, continuing:
AI is currently fundamentally changing shopping, and our positioning in helping brands gain increased knowledge of each shopper is precisely the data layer that AI models lack to reach their potential.
New Metric: Retained Purchases
Handling a single return currently costs an e-commerce retailer between 200 and 400 Swedish kronor. Ecomid's business model is based on e-commerce retailers paying a monthly fee based on size and the number of activated AI modules. Given the high return costs, the company believes that the investment will quickly pay for itself for the stores.
This ties into an issue that is constantly debated in the e-commerce industry: the pursuit of conversion versus actual profitability. Oscar Rundqvist believes that e-commerce retailers must change strategy and stop looking at traditional average order value.
Online shopping has long been about maximizing the top line at virtually any price. Now that it has become significantly more expensive to deliver and return goods, it is clear that this is not sustainable. The focus must therefore be on selling more of the right things, and less of the wrong things,” he says.
He points out that the industry needs a new metric.
Average order value doesn't really say anything; what the shopper retains and loves is what has always counted, which is precisely what the Ecomid solution optimizes for at our connected brands,” says Oscar.
The Search Function Should Be Completely Redone
Today, the platform has over 60 connected brands and reaches approximately 20 million users each month. All of this has been built entirely without a dedicated sales team. Now, the money will be used to further refine the product, including through the AI assistant Vera and the digital passport "Shopping Passport".
The aim is to solve a problem that many e-commerce retailers struggle with daily.
We will roll out, for example, the world's most advanced search. I have met hundreds of brands in the last two years and not once have they said they love their search,” says Oscar Rundqvist.
He is convinced that their new capital will change how visitors find products on the sites.
We are changing that now. Those who work with Ecomid will be able to say that they love their search.
Customers Become Shareholders
Previously, the company has raised a total of 34 million Swedish kronor, including from H&M. In the new round, sports chain Stadium is also entering as an investor, after first testing the platform as a regular customer. But allowing its own customers to buy into the company was not a difficult decision.
It was obvious. We are an industry solution to an industry problem, and have, for example, had H&M with us as an investor from day one,” says Oscar Rundqvist.
Having those you build for as close as possible is a shortcut to building the right things, to anchoring needs with solutions as frequently as possible.
Aiming for the USA and Europe
During the most recent broken financial year, which ended in April 2025, Ecomid's turnover landed at 600,000 Swedish kronor. At the same time, the company's operating loss was 6.1 million Swedish kronor.
Currently, the company has 17 employees. However, they do not use a traditional recruitment process; all personnel have been hired through internal recommendations based on an internal talent list.
We are continuously looking for the right people. So far, we have found all 17 through recommendations from others in the team. We have a talent list that I ask everyone in the team to fill in,” says Oscar Rundqvist.
With a well-filled cash register, the focus is now on a broad international launch. The company has already spent a lot of time in New York and the map for the future has been drawn up.
The rest of the Nordics and the UK are first in line, then also other key markets in Europe as well as the USA,” concludes Oscar Rundqvist.