Fashion startup Atoire announced Thursday that it has raised $9.5 million in seed funding to connect consumers directly with the same factories that produce goods for luxury brands like Prada and Louis Vuitton. The round includes investments from a16z Speedrun, Night Capital, and Lightspeed Ventures’ Jeremy Liew.
The company’s pitch is straightforward: shoppers can buy handbags and clothing made from the same materials, in the same facilities, as high-end designer items — but at a fraction of the price. An Italian leather handbag on Atoire costs a few hundred dollars, compared to the thousands a luxury brand would charge for a comparable piece.
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From creator platform to luxury manufacturing
Co-founder and CEO Redouane Ramdani brings a personal connection to the industry. Growing up in France with family members who worked in luxury manufacturing, he said he always imagined he would eventually build something in the sector. After selling his creator platform Snipfeed in 2024, Ramdani returned to that idea — but found the manufacturing sector had shifted significantly.
Traditionally, luxury factories operated as contract manufacturers. A brand like Ralph Lauren would supply its own designs and materials, and the factory would produce them. That model forced brands to commit to large minimum orders, often leading to overproduction. Meanwhile, factories depended on a small number of big clients, leaving them exposed if a brand canceled an order or excess inventory went unsold.
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That dynamic is changing, according to Ramdani.
“What’s changing is that the best factories increasingly have their own design and product-development capabilities,” he told TechCrunch. “Instead of simply manufacturing someone else’s designs, they can develop products themselves, adapt them quickly, and produce in smaller batches.”
Ramdani teamed up with Luis Angulo to launch Atoire, which uses AI to help factories identify which products are likely to sell before committing to large production runs. The goal, he said, is to reduce overproduction and allow factories to diversify beyond a handful of large customers.
Positioning against fast fashion and dupe culture
Atoire enters the market at a moment when “dupe culture” has gained significant traction, particularly among younger consumers who have grown frustrated with luxury brands’ steep post-pandemic price increases. Buying near-identical replicas of high-end goods has become a status symbol in its own right.
But Ramdani is careful to distinguish Atoire’s products from dupes. “It’s the same material, same craftsmanship,” he said. “It’s coming from the same factories.” He also rejects the fast-fashion label, describing the company’s approach as “slow.”
He draws a comparison to Quince, the retailer known for selling high-quality, low-priced essentials. “We are talking to a different generation who is coming back for things that are trendy but well-made,” he said, adding that consumers are increasingly wary of fast fashion’s environmental impact.
The company’s stated ambition is to become an alternative to Zara, offering “very high quality for a price point that’s very affordable.”
How Atoire uses AI across the business
AI is central to Atoire’s operations. The company uses machine learning to analyze fashion trends and test how colors might perform on products. AI agents estimate consumer demand and predict when materials might run short, allowing factories to stock up in time.
On the consumer side, the Atoire website features an AI agent that can build outfits based on whatever inspires the customer. Over time, the system learns shoppers’ habits to make personalized recommendations. Ramdani said the company is already seeing an increase in sales referrals from platforms like ChatGPT and Claude.
The fresh capital will fund logistics, support production, and expand the company’s AI tools. Atoire also plans to release its own in-house line, similar to Amazon Essentials, and will work with creators and influencers to help them launch their own clothing lines.
The company currently works with more than 40 factories worldwide and ended last year with around $5 million in sales. Ramdani said the company is expected to reach an annualized run rate north of $55 million this year.
“We are growing super fast,” he said.
This article is for informational purposes only and does not constitute financial advice. The startup and venture capital market is volatile and uncertain; readers should conduct their own research before making any investment decisions.
