In a turn of events that reflects the shifting landscape of online fashion, Japan’s leading fashion e-commerce platform Zozo has acquired Lyst, the UK-based luxury fashion shopping platform, for $154 million. The deal will see Lyst become a wholly owned subsidiary of Zozo, retaining its current leadership under CEO Emma McFerran, and continuing to operate independently.
This acquisition is more than just a financial transaction, but a strategic alignment. Both companies share a vision to transform the online fashion shopping experience by blending AI-driven personalisation, global fashion discovery, and innovative sizing technologies. For Zozo, the move provides an immediate international footprint in the US, the UK, and European markets, while for Lyst, the deal brings new investment, technical resources, and access to millions of new customers.
However, the acquisition comes at a time of recalibration. Once valued at $700 million in 2021 following an $85 million raise led by Fidelity, Lyst’s $154 million price tag is emblematic of the cooling investor sentiment toward e-commerce platforms post-pandemic, and the rising pressure to demonstrate AI-driven innovation.
Below, we break down three things you need to know about Lyst and why this acquisition matters.
A fashion marketplace built for the digital age
Founded in 2010 by Chris Morton and Sebastjan Trepca, Lyst operates as a fashion search engine and shopping platform, connecting more than 160 million annual users with over 27,000 brands and retailers. Its asset-light marketplace model aggregates inventory from luxury names like Prada, Gucci, Bottega Veneta, and Selfridges, offering users a curated yet expansive shopping experience.
What sets Lyst apart is its data-centric approach. It leverages one of the largest data sets in fashion to inform product recommendations, trend insights, and consumer behavior predictions. This data powers The Lyst Index, a widely cited quarterly ranking of fashion’s hottest brands and products. Lyst’s model emphasises discovery and inspiration, not just transactions—making it a standout in a space often dominated by logistics-heavy, price-driven platforms.
Post-pandemic challenges and a reset in valuation
Lyst was one of the early winners of the COVID-era e-commerce boom. Its $85M funding round in 2021 positioned it for a possible IPO. However, the subsequent crash in public market valuations for e-commerce firms, combined with the resurgence of offline retail, reshaped investor appetite.
Despite maintaining steady revenue of £50.1 million in the year ended March 2024. Lyst faced slowing growth, stiff competition from Amazon and Temu, and margin pressures. Still, the company has made strides: it cut its net loss from £23.7M to £510K year-over-year and posted an operating profit before taxes of £443K, along with $1 million in EBITDA.
This acquisition represents a pragmatic pivot. By partnering with Zozo, Lyst can tap into a broader base of customers, reduce cost inefficiencies, and gain access to transformative technologies, especially in fit and sizing innovation, a core strength of Zozo through products like ZOZOMAT and ZOZOGLASS.
AI at the core of future fashion discovery
In today’s tech-fueled fashion landscape, companies must go beyond aesthetics and they need intelligence. Lyst and Zozo are leaning into AI-powered discovery as a defining theme for their integration. Although specifics remain vague, the companies have committed to transforming the future of fashion discovery through AI and technology.
Lyst already utilises AI and fashion intelligence to enhance user experience across its app and website. With Zozo’s backing, this capability will likely deepen, enabling smarter recommendations, personalised discovery pathways, and reduced returns through better sizing. This aligns well with Zozo’s broader product portfolio, including its US-launched ZOZOFIT 3D body scanning and its Japan-based WEAR social styling app.
Ultimately, this acquisition is not just about merging markets. It is about melding data, design, and digital experiences to create a new era of online fashion commerce.
Lyst CEO Emma McFerran commented: “This is an exciting moment for Lyst, and a win-win for our fashion ecosystem of shoppers and partners as we move forward as part of ZOZO Group. Our space is evolving fast, and we share a vision with ZOZO to build a better, brighter future for the industry, using AI and technology. With ZOZO’s scale, expertise and support, Lyst will be in an even stronger position to reimagine fashion discovery online.”
ZOZO Executive Director, Utahiro Inui said: “Lyst has built an exceptional platform that aligns perfectly with our vision of creating more inspiring, joyful shopping experiences. Lyst’s industry credibility and unique brand voice, coupled with market-leading technology and scale, means they are uniquely positioned to redefine the space. Together, we will transform the future of fashion shopping online, as part of our ambition to “Inspire the world. Deliver joy every day.”
