Snap wants to get Snapchat’s young-skewing user base to buy more stuff through the social app. As part of that strategy, Snap has acquired Fit Analytics, a German apparel size-recommendation engine that helps online shoppers virtually find the right clothing size.
Financial terms of the deal were not disclosed.
Founded in 2010, Berlin-based Fit Analytics provides a product called Fit Finder to over 18,000 retailers and brands. Through this acquisition, more than 100 Fit Analytics team members will join Snap, most of which are technical staff across engineering, data science and product roles.
The drive to boost ecommerce revenue is part of Snap’s ambitious growth strategy: The company is projecting top-line increases of at least 50% annually over the next several years — a forecast that isn’t predicated on growth the Snapchat user base, according to CEO Evan Spiegel.
Snap sees clothing as a massive opportunity. According to research firm Piper Sandler, apparel and accessories currently represent one-third of total U.S. teenager spending and is the largest single category among the cohort.
As part of Snap, Fit Analytics will continue to serve its existing clients. It also will work with the Snap product team to grow its e-commerce and shopping offerings, which include both AR and video formats.
“Our main focus going forward will be to scale the Fit Analytics business and work with Snap to grow their shopping platform, leveraging our technology and expertise,” Fit Analytics co-founder and CEO Sebastian Schulze wrote in a blog post Wednesday. “Our teams will be jointly executing on next-gen shopping, fashion and style offerings.”
Fit Analytics will continue to operate out of Berlin, reporting to Snap VP of engineering Nima Khajehnouri. The office is Snap’s first in Berlin, adding to the company’s office in Hamburg, which opened in 2017 and is headed by Goetz Trillhaas, managing director for Germany, Austria and Switzerland.
The Fit Finder system uses machine-learning algorithms that combine consumer-provided information about measurements, coupled with data from retailers about the fabric, measurements and fit for each item, as well as purchases and returns.