MySize Inc. Acquires Percentil Assets: Expanding into AI-Driven Circular Fashion and Re-Commerce

MySize Inc. Expands into Circular Fashion with Percentil Acquisition

MySize, Inc. (NASDAQ: MYSZ), a leader in AI-driven retail solutions and omnichannel e-commerce platforms, has announced a strategic acquisition of key assets from Percentil, a prominent managed marketplace for second-hand fashion 1

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. This move marks MySize's expansion into the circular fashion and re-commerce sectors, aligning with upcoming EU regulatory requirements.

Strategic Acquisition Details

The acquisition, valued at approximately €610,000 ($679,000), was executed through MySize's newly-formed Spanish subsidiary, New Percentil, S.L. 2

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. The deal includes:

1. 17 employees, including the former CEO and CMO
2. A central warehouse with proprietary quality control and picking systems
3. An AI-powered pricing engine and garment assessment tools
4. Over 120,000 quality-vetted garments

MySize expects this new business unit to generate $1.5 million in revenues in the second half of 2025, representing a 25% increase to the company's total revenue 1

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AI-Driven Circular Fashion Strategy

MySize plans to reposition Percentil as a premium marketplace, focusing on higher-value items and an elevated re-commerce experience. The company will integrate its proprietary AI technology to enhance various aspects of the platform 1

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1. Optimize pricing
2. Enhance product recommendations
3. Personalize user journeys
4. Improve operational efficiency

This AI-driven approach is expected to increase customer satisfaction, reduce churn, and streamline inventory management.

B2B Circularity as a Service

A key component of MySize's strategy is the launch of a B2B resale solution called 'Circularity as a Service.' This offering enables fashion brands to monetize overstock and returns by integrating with Percentil's platform. Initial pilots with major retailers like Springfield (Tendam Group) and C&A have already validated the model's demand 1

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Synergies with Existing Portfolio

The acquisition creates synergies with MySize's existing portfolio companies 1

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1. Naiz Fit: Provides size and fit solutions to reduce returns and improve sizing data for re-commerce.
2. Orgad: MySize's e-commerce and logistics unit will partner with Percentil to optimize overstock and returns management.

Market Opportunity and Regulatory Tailwinds

The total addressable market for second-hand and circular fashion in Western Europe is estimated to exceed $25 billion by 2027 1

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. This acquisition is strategically timed to align with upcoming European Union regulations under the EU Strategy for Sustainable and Circular Textiles, which will require brands to implement reuse, recycling, and waste-reduction frameworks 1

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Financial Implications

MySize financed the acquisition through existing cash reserves without issuing additional shares or debt. The company maintains strong liquidity with a current ratio of 3.03 and more cash than debt on its balance sheet 2

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. Despite challenges in maintaining profitability, MySize has demonstrated strong revenue growth of 18.02% over the last twelve months 2

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Future Outlook

CEO Ronen Luzon emphasized the company's focus on building a profitable, scalable, and sustainable circular fashion business. With this acquisition, MySize aims to accelerate its entry into the circular economy while strengthening its financial foundations 1

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. The company continues to enhance its leadership team and pursue strategic growth opportunities in the AI-powered retail solutions sector.