MySize acquires Percentil assets to expand re-commerce

AIRPORT CITY, Israel - MySize, Inc. (NASDAQ: MYSZ), an AI-driven retail solutions company with a market capitalization of $2.66 million, has announced the acquisition of key assets of Percentil, a second-hand fashion marketplace, through its new subsidiary, New Percentil, S.L. This strategic move, following Percentil’s insolvency proceedings, is aimed at repositioning the platform to offer a premium re-commerce experience in line with upcoming EU regulatory requirements.

MySize’s CEO, Ronen Luzon, stated that the acquisition is part of a strategy to build a profitable and sustainable circular fashion business. The company acquired the operational structure of Percentil, which includes 17 employees, a central warehouse, an AI-powered pricing engine, and over 120,000 quality-vetted garments.

The transaction, valued at approximately €610,000 (about $679,000), was financed through existing cash reserves without issuing additional shares or debt. With a healthy current ratio of 3.03 and more cash than debt on its balance sheet, MySize maintains strong liquidity. MySize expects the Percentil business unit to contribute $1.5 million in revenues in the second half of 2025, representing a 25% increase to MySize’s total revenue and an improvement in group profitability. According to InvestingPro analysis, the company is currently trading below its Fair Value, with 13 additional ProTips available for subscribers.

Additionally, MySize is launching a B2B resale solution, ’Circularity as a Service,’ to help brands monetize overstock and returns, which has already seen successful pilots with Springfield and C&A. This service aligns with new EU legislation that requires brands to have formal reuse plans for garments.

The acquisition is set to create synergies with MySize’s existing portfolio companies, such as Naiz Fit’s size and fit solutions and Orgad’s e-commerce and logistics unit. MySize’s proprietary AI technology will also be integrated into Percentil’s platform to enhance user experience and operational efficiency.

This strategic acquisition comes at a time when the EU is implementing regulations that mandate reuse and recycling in the textile industry, positioning Percentil to become a vital partner for fashion brands. The total addressable market for second-hand and circular fashion in Western Europe is estimated to exceed $25 billion by 2027. While MySize has demonstrated strong revenue growth of 18.02% over the last twelve months, InvestingPro data reveals the company faces challenges in maintaining profitability, making this expansion crucial for its future success. Unlock comprehensive financial analysis and real-time insights with InvestingPro’s advanced metrics and expert recommendations.

The information reported is based on a press release statement from MySize, Inc.

In other recent news, MySize, Inc. has reported an 18% year-over-year revenue growth for 2024, alongside a doubling of its cash reserves and a 37% reduction in net loss. The company has been actively pursuing mergers and acquisitions, with two Letters of Intent aimed at expanding into the second-hand apparel and AI shoe technology sectors. The integration of Orgad and Naiz Fit into MySize Group has contributed positively to revenue and operational efficiency. MySize is also focused on geographic expansion, particularly with Orgad’s entry into European markets, as part of its profitability roadmap. Additionally, MySize has appointed Roy Golan to its Board of Directors to strengthen its strategic growth plans, leveraging his expertise in IPOs, fundraising, and M&A activities. CEO Ronen Luzon emphasized the company’s approach to scaling with financial discipline and the development of AI-powered retail solutions. The company continues to enhance its leadership team to maintain strategic focus and drive shareholder value. These developments reflect MySize’s ongoing commitment to sustainable and profitable growth.

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