Traditional retail adds multiple markups, creates excess inventory, and relies on long supply chains for premium goods. Consumers end up paying 5 to 10 times the production cost, while 40% of fashion inventory is either discounted or destroyed. Manufacturers struggle with unpredictable demand and overproduction.
Quince cuts out these inefficiencies with its manufacturer-to-consumer (M2C) platform, linking factories straight to customers. It uses AI weekly SKU forecasting, small-batch testing, and real-time production to offer cashmere sweaters at 70% of retail prices without sacrificing quality.
The company just raised $500 million in a Series E round led by ICONIQ with participation from Basis Set Ventures, Wellington Management, Wndrco, MarcyPen Capital Partners, Ballie Gifford, Notable Capital and DST Global, boosting its valuation to $10.1 billion.
This funding will accelerate global expansion after reaching $1 billion in revenue and achieving triple-digit growth each year since launch.
Proving quality is tangible and accessible
Founded in 2018 in San Francisco by Sid Gupta, Zunu Mittal, and Sourabh Mahajan, who spotted retail’s core flaw: consumers equate price with quality despite measurable alternatives. Launching with cashmere, where fibre composition is verifiable, they proved that premium doesn’t require markups.
Instead of old-school quarterly bulk orders, Quince uses AI to predict SKUs and sizes every week, tapping into verified materials and factory APIs. Production only ramps up after small-batch tests show real demand.
Key advantages include prices 70 to 80% lower than retail (cashmere $50 instead of $250), inventory cycles of 2 to 4 weeks compared to retail’s 3 to 6 months, real-time factory connections that cut out intermediaries, and AI-driven demand forecasting down to the item, colour, or size.
What’s next?
The $500 million will support global expansion beyond apparel into home goods, accessories, and tech.
Key goals include launching pilot programs for international marketplaces in the EU and Asia, improving AI forecasting accuracy (aiming for less than 5% overproduction), expanding the factory network to over 500 specialist partners, and offering B2B-to-M2C2C licensing with white-label options for brands.
Long-term, Quince wants to be the backbone that enables manufacturers to skip retail entirely and become more efficient as they scale.
