MySize Inc. Acquires Key Assets of Percentil: Expanding into Circular Fashion and Re-Commerce
Rhea-AI Summary
MySize Inc. (NASDAQ: MYSZ) has acquired key assets of Percentil, a leading second-hand fashion marketplace operating in Spain, France, Germany, and Italy, through its new Spanish subsidiary. The acquisition, valued at approximately €610,000 ($679,000), includes a €40,000 cash payment and assumption of €570,000 in liabilities.
The deal brings in Percentil's 17 employees, warehouse infrastructure, AI-powered pricing engine, and inventory of 120,000 quality-vetted garments. MySize expects the Percentil unit to generate $1.5 million in revenues in H2 2025, representing a 25% increase to total revenue. The company plans to reposition Percentil as a premium marketplace and launch a B2B 'Circularity as a Service' solution, enabling brands to monetize overstock and returns. The acquisition aligns with upcoming EU regulations requiring fashion brands to implement reuse and recycling frameworks.
Positive
- Strategic acquisition at a relatively low cost (€610,000) with no share dilution or debt issuance
- Expected to generate $1.5M in revenue in H2 2025, increasing MySize's total revenue by 25%
- Immediate access to four major European markets (Spain, France, Germany, Italy)
- Acquisition includes valuable assets: 17 employees, warehouse, AI pricing engine, and 120,000 garments
- Positions company to benefit from EU regulatory changes requiring fashion brands to implement reuse frameworks
- Creates new recurring revenue stream through SaaS-based B2B resale solution
Negative
- Acquisition of assets from bankruptcy proceedings may carry integration risks
- Assumes €570,000 in customer and labor liabilities and debt payments
- Faces competition from established players like Vinted in the second-hand fashion market
Insights
MySize's strategic €610,000 acquisition of Percentil provides entry into profitable circular fashion with minimal investment and regulatory tailwinds.
MySize's acquisition of Percentil represents a capital-efficient expansion into the circular fashion market, with a compelling price-to-potential ratio. The company is paying just €610,000 (approximately $679,000) - mostly through assumption of liabilities rather than cash outlay - to acquire a business they project will generate
The strategic rationale has three key dimensions. First, this acquisition provides immediate geographic expansion into four major European markets (Spain, France, Germany, and Italy). Second, it creates significant cross-selling synergies with existing portfolio companies - Naiz Fit's sizing technology can enhance Percentil's offering, while Orgad's logistics capabilities complement Percentil's operations. Third, and perhaps most valuable, it positions MySize advantageously ahead of pending EU regulatory changes requiring fashion brands to implement reuse frameworks.
What's particularly notable is MySize's emphasis on profitability over growth-at-all-costs. Management explicitly states they intend this unit to be EBITDA-positive from inception, marking a disciplined approach to M&A. The acquisition also diversifies MySize's revenue streams, adding a recurring SaaS component through the B2B "Circularity as a Service" offering to fashion brands seeking regulatory compliance.
At the stated valuation, MySize is acquiring tangible assets (warehouse, inventory of 120,000 garments), intellectual property (AI pricing engine, quality control systems), and human capital (17 employees including key executives) at what appears to be a significant discount, likely due to the insolvency circumstances. This represents an opportunistic acquisition with potential for significant ROI if execution meets expectations.
Strategic Move Bolsters MySize's B2B & B2C Portfolio and Aligns with Upcoming EU Regulatory Requirements
AIRPORT CITY,
Founded to promote sustainable fashion through high-quality second-hand items, Percentil grew into a premium re-commerce player. Its managed marketplace model ensures product quality and drives higher resale values and much better buyer and seller experiences, which is expected to outperform peer platforms like Vinted and other fast fashion resellers in profitability and customer retention.
Strategy Shift with Profitability at the Core
Following the acquisition, MySize intends to reposition the platform as a premium marketplace, marking a strategic evolution focused on higher-value items and a premium re-commerce experience. This pivot reflects consumer demand for quality, authenticity, and elevated resale experiences — and supports the platform's push toward a sustainable business model based on increased margins and long-term brand equity.
"Our goal with Percentil is clear: build a profitable, scalable, and sustainable circular fashion business from day one," said Ronen Luzon, CEO of MySize, Inc. "This is not about growth at all costs. We are focused on smart, cash-efficient scaling — with a model that generates EBITDA-positive returns from the very beginning."
A Strategic Acquisition
The deal has the potential to be a profitable investment for MySize, with a total transaction value of just approximately
"We believe this to be a strategically sound and financially compelling acquisition," said Ronen Luzon, CEO of MySize, Inc. "With a minimal upfront investment, we believe that we've secured a revenue-generating business with deep logistics capabilities, a growing customer base, and a model that's profitable. We believe that Percentil's integration accelerates our entry into the circular economy while strengthening the financial foundations of our group."
Unlocking Circularity as a Service
Through this acquisition, MySize is launching a B2B resale solution ('Circularity as a Service') that enables brands to monetize overstock and returns by integrating with Percentil's platform. This scalable offering enables fashion brands to resell returned, overstock, or pre-owned garments. MySize believes that initial pilots that Percentil has completed with Springfield (Tendam Group) and C&A validate the model's demand among major retailers seeking to comply with new EU legislation requiring formal reuse plans for garments.
The monetization model is SaaS-based, providing recurring revenue streams and potential high-margin scalability.
The total addressable market (TAM) for second-hand and circular fashion in
The addition of Percentil creates clear synergies with existing MySize portfolio companies:
- Naiz Fit provides brands with size and fit solutions to reduce returns, while enabling better sizing data to support re-commerce. Also, Naiz Fit offers a B2B SaaS platform solution to easily connect to MySize companies to unlock all their capabilities.
- Orgad, MySize's e-commerce and logistics unit, will partner with Percentil to optimize overstock and returns, making second life retail economically and operationally viable.
In addition, MySize's proprietary AI technology, which powers solutions like MySizeID and Naiz Fit, will be integrated into Percentil's platform to optimize pricing, enhance product recommendations, personalize user journeys, and improve operational efficiency. This AI-driven backbone is expected to elevate customer satisfaction, reduce churn, and streamline inventory management — delivering competitive advantages across the resale funnel.
What's Included in the Acquisition
MySize acquired select assets of Percentil's operational structure out of bankruptcy, including:
- 17 employees, including the former CEO and CMO
- The central warehouse and its proprietary quality control and picking systems
- AI-powered pricing engine and proprietary garment assessment tools and processes
- A stock of over 120,000 quality-vetted garments ready to scale up sales
Positioned for Growth and Supported by EU Regulatory Tailwinds
This acquisition is also strategically timed to align with major upcoming European Union regulations. Under the EU Strategy for Sustainable and Circular Textiles, brands will soon be required to implement reuse, recycling, and waste-reduction frameworks as part of their environmental responsibilities. This creates a powerful tailwind for recommerce platforms like Percentil, potentially positioning it as an essential partner for fashion brands navigating regulatory compliance while meeting growing consumer demand for sustainability.
"With the EU leading global efforts in textile circularity, we see second-hand platforms evolving from niche alternatives into critical infrastructure for the fashion industry," Luzon added. "Percentil gives us a front-row seat in this transformation."
About My Size, Inc.
MySize, Inc. (NASDAQ: MYSZ) is a global leader in omnichannel e-commerce platforms and AI-driven sizing solutions, including MySizeID and Naiz Fit. The Company's solutions are designed to drive revenue growth, reduce operational costs, and enhance customer experiences for business clients worldwide. We routinely post information that may be important to investors in the Investor Relations section of our website. Follow us on Facebook, LinkedIn, Instagram, and X (formerly known as Twitter). For more information, visit www.mysizeid.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to the acquisition, expected revenues, anticipated benefits and impact of the acquisition of Percentil on MySize and the anticipated market opportunity. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including, but not limited to: the effect of the announcement of the proposed acquisition on the parties' commercial relationships and workforce; the ability of MySize to integrate Percentil's technology, operations and business; developments and changes in general market, political, economic, and business conditions; failure of our product offerings; failure to achieve the expected benefits of our acquisitions; risks associated with managing our growth; risks associated with new product, subscription and support offerings, including our efforts to leverage AI; shifts in priorities or delays in the development or release of new offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; failure of our business strategies; rapidly evolving technological developments in the market for security products, subscriptions and support offerings; defects, errors, or vulnerabilities in our products, subscriptions or support offerings; our customers' purchasing decisions and the length of sales cycles; and our competition; our ability to attract and retain new customers; our ability to acquire and integrate other companies, products, or technologies in a successful manner. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results may differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the
[1] Sources:
- ThredUp 2024 Resale Market Report: https://www.thredup.com/resale
- Statista: European secondhand apparel market data: https://www.statista.com/statistics/1246440/european-secondhand-apparel-market-size/
Logo: https://mma.prnewswire.com/media/689689/5313477/MySize_Logo.jpg
Investor Contacts:
Oren Elmaliah, CFO
ir@mysizeid.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/mysize-inc-acquires-key-assets-of-percentil-expanding-into-circular-fashion-and-re-commerce-302452426.html
SOURCE My Size Inc.
FAQ
What did MySize (MYSZ) acquire from Percentil and for how much?
How much revenue is the Percentil acquisition expected to generate for MySize (MYSZ)?
What is MySize's (MYSZ) strategy for Percentil after the acquisition?
In which countries does Percentil operate after MySize's (MYSZ) acquisition?
How does the Percentil acquisition align with EU regulations?
