Securing 30 million DKK for growth: Hakio predicts the future so fashion brands can reduce waste

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Overproduction, lost sales and operational inefficiencies: Every year, retailers lose up to one trillion euros (over seven thousand billion dollars) due to poor planning

Aarhus startup Hakio solves this problem with machine learning algorithms that help fashion companies better forecast future sales and trends so they can stock the right quantities at the right times. The startup’s algorithms analyze up to 150 data variables, including customer behavior, macroeconomic trends, and marketing data. This way, Hakio captures market anomalies and provides insights based on advanced demand forecasts.

“By removing bias when creating a baseline forecast and subsequently including expert knowledge in an elegant and user-friendly platform, fashion brands can increase planning accuracy and reduce operational costs and working capital. This means that companies can free up funds to spend elsewhere,” says Malte Bjerg Vittrup, co-founder and CEO of Hakio.

With just two years under its belt, Hakio has just landed a DKK 30 million investment for growth.

Industry spends billions on planning

Hakio’s platform is developed together with customers such as Jack & Jones and Only. The startup wants to become a transformative force in the sector, as clothing brands spend an estimated $6 billion annually planning and overproducing billions of garments.

With 20 people already working to improve the Hakio platform, the startup wanted to more than double the team to increase its impact and reach even more customers.

“At Hakio, we are driven by a commitment to reduce waste and cut losses due to poor forecasting. We already help brands reduce costs and improve profits, but thanks to our new investors, we now have the resources and knowledge to further develop and scale Hakio to the next level and we can’t wait to get started,” says Malte Bjerg Vittrup.

The funding round is led by People Ventures and Dreamcraft Ventures alongside existing investors Blazar Capital and Founderment. In addition to data scientists and developers to further develop the platform, the funding will be used to expand the platform to new European markets.