Money is being spent--regardless of economic uncertainty
This week's All Things Fashion Tech Newsroom: Cake raises millions and Meta invests billions, while Prime Day broke a new record with $24.1 billion in U.S. online sales.
CAKE raised a total of $5.2M in their seed round
Meta invests $3.5 billion in world’s largest eye-wear maker
FARM Rio announced a Clean Out resale program powered by ThredUp
Amazon’s Prime Day numbers double past Black Friday sales
Original Birkin bag sells for record $10 million at Paris auction
CAKE, the invite-only membership shopping app raised a total of $5.2M in their seed round
By Mary Korlin-Downs
Cake, an invite-only membership shopping app co-founded by Dave McLaughlin, Estelle Palandjian, and Ben Fischman, announced a $5.2 million seed round led by Boston Seed Capital, alongside Launchpad Ventures and Impellent Ventures . Designed around a $100 annual membership fee, Cake offers exclusive perks such as early access to sales, VIP rewards, and higher order values for partnered fashion and beauty brands—all within a tightly curated ecosystem.
As an all-access growth strategy, Cake aims to expand beyond fashion and beauty into new verticals, leveraging data-driven personalization to boost consumer loyalty and brand partnerships . Despite being less than a year old, the platform has already demonstrated strong traction by delivering measurable uplift in order value for participating brands. With fresh capital in the coffers, Cake is well-positioned to enhance its member benefits, deepen tech integrations, and accelerate scale in the competitive social commerce space.
Meta invests $3.5 billion in world’s largest eye-wear maker in AI glasses push
By Boomberg
Meta Plaforms Inc. bought a minority stake in the world’s largest eye-wear maker EssilorLuxottica SA, a deal that increases the US tech giant’s financial commitment to the fast-growing smart glasses industry, according to people familiar with the matter.
Facebook parent Meta acquired just under 3% of Ray-Ban maker EssilorLuxottica, a stake worth around €3 billion ($3.5 billion) at the current market price, said the people, who asked not to be identified because deliberations are private. Menlo Park, California-based Meta is considering further investment that could build the stake to around 5% over time, the people added, though those plans could still change.
Meta’s investment in the eyewear giant deepens the relationship between the two companies, which have partnered over the past several years to develop AI-powered smart glasses.
Meta currently sells a pair of Ray-Ban glasses, first debuted in 2021, with built-in cameras and an AI assistant. Last month, it launched separate Oakley-branded glasses with EssilorLuxottica.
EssilorLuxottica Chief Executive Officer Francesco Milleri said last year that Meta was interested in taking a stake the company, but that plan hadn’t materialized until now. The deal aligns with Meta CEO Mark Zuckerberg’s commitment to AI, which has become a top priority and major expense for the company. Smart glasses are a key part of that plan.
FARM Rio announced a Clean Out resale program powered by ThredUp
FARM Rio, a global fashion and lifestyle brand from Rio de Janeiro, Brazil, today announced a Clean Out resale program that allows customers to resell gently-worn items for FARM Rio shopping credit. The program is powered by ThredUp’s Resale-as-a-Service® (RaaS®), which enables the world's leading fashion brands and retailers to deliver customizable, scalable resale experiences to their customers. FARM Rio joins more than 50 other brands offering resale programs through RaaS, including J.Crew, Tommy Hilfiger, and Madewell.
Through the new program, customers can earn FARM Rio shopping credit for sending in gently-worn items. To participate, customers can generate a prepaid shipping label from farmrio.thredup.com fill any shippable box or bag with apparel, shoes, and accessories from any brand in their closet, and ship it to ThredUp for free. For items that sell on ThredUp, customers receive FARM Rio credit that can be used both online and in-store.
Amazon’s Prime Day numbers double past Black Friday sales
By Barron
Amazon achieved a new record with $24.1 billion in U.S. online sales during its four-day Prime Day event—more than double the total for Black Friday 2024—driven by major discounts across electronics, home, apparel, and personal care categories. Consumers took advantage of the extended format, comparing prices across retailers, which resulted in sales accelerating throughout the week—Thursday alone saw a 165% increase year-over-year.
Meanwhile, Amazon’s dominance spurred a ripple effect across the retail industry. Walmart, Target, and Costco launched competing sales during the same period, signaling intensifying competition and offering consumers more options . Despite signs of cautious consumer behavior—such as price comparison and subdued first-day spending—Amazon still experienced record-breaking performance and saw its stock rise by around 1.2% post-event, bolstered by membership growth and increased advertising revenue
Original Birkin bag sells for record $10 million at Paris auction
By Reuters
The original bag custom-made for actress Jane Birkin — which went on to inspire one of the most iconic accessories in modern fashion history — sold for a record €8.6 million ($10.04 million) at a Sotheby’s auction in Paris on Thursday.
According to fashion lore, the first Birkin bag was created after the Franco-British actress and singer sat beside Hermès executive Jean-Louis Dumas on a flight in 1984 and mentioned she needed a bag that was both elegant and functional for her life as a young mother.
Dumas reportedly sketched the concept mid-flight, designing a rectangular handbag with space specifically for baby bottles.
Hermès produced that prototype for Birkin, later releasing smaller versions to the public. The now-legendary design quickly gained popularity and became a cornerstone of the brand’s identity and commercial success.
Standard Birkin bags today retail for over $10,000, but this original — which features Birkin’s “J.B.” initials on the flap and a non-detachable shoulder strap, unlike later versions — was sold by phone to a private buyer in Japan, according to Sotheby’s.
The final bid set a new record for the most expensive fashion item ever sold at auction.
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Interesting!