Israel-based e-commerce and AI-driven apparel-sizing firm MySize aims to expand its reach in fashion resale and up its circularity profile with the acquisition of European second-hand fashion marketplace Percentil.
Percentil was founded in Spain to promote second-hand fast fashion from brands such as Zara, Mango and Massimo Dutti. The retailer filed for bankruptcy in February, citing competition from fast-fashion brands such as Shein as a factor. With its acquisition, MySize will reposition the platform as a premium marketplace focusing on higher-value items and an elevated re-commerce experience.
“Our goal with Percentil is clear: Build a profitable, scalable and sustainable circular fashion business from day one,” said Ronen Luzon, CEO of MySize, Inc. “This is not about growth at all costs. We are focused on smart, cash-efficient scaling—with a model that generates EBITDA-positive returns from the very beginning.”
MySize sees the deal as a potentially profitable investment, as the total transaction value was around approximately 610,000 euros (approximately $679,000), consisting of a 40,000-euro (approximately $44,500) cash payment made by one of MySize’s wholly-owned subsidiaries and the assumption of certain customer and labor liabilities and debt and social security payments in the aggregate amount of approximately 570,000 euros (approximately $634,500). MySize financed the acquisition through existing cash reserves without the issuance of additional shares or debt.
MySize expects the Percentil business to generate $1.5 million in revenue in the second half of 2025, representing a projected 25-percent increase to the company’s total revenue and a step-function improvement in group profitability.
“We believe this to be a strategically sound and financially compelling acquisition,” Luzon said. “With a minimal upfront investment, we believe that we’ve secured a revenue-generating business with deep logistics capabilities, a growing customer base and a model that’s profitable. We believe that Percentil’s integration accelerates our entry into the circular economy while strengthening the financial foundations of our group.”
With the acquisition, MySize will launch a B2B resale solution that enables brands to monetize overstock and returns by integrating with Percentil’s platform. This will allow fashion brands to sell returned, overstock or pre-owned garments. The platform will help major retailers to comply with new European Union legislation requiring formal reuse plans for garments. The monetization model is SaaS-based, providing recurring revenue streams and potential high-margin scalability.
The total accessible market for second-hand and circular fashion in Western Europe is estimated to exceed $25 billion by 2025, according to ThredUp’s 2024 Resale Market Report and Statista’s projections for the European second-hand apparel market.
MySize said the addition of Percentil will create synergies with its existing portfolio of companies, including Naiz Fit, which provides size and fit solutions to reduce returns, and Orgad, MySize’s e-commerce and logistics unit. Percentil also will be able to tap into MySize’s proprietary AI technology to optimize pricing, enhance product recommendations, personalize user experience and improve operational efficiency.
As part of the acquisition, MySize will take select assets of Percentil’s operating structure out of bankruptcy, including 17 employees (including the former CEO and chief marketing officer), the central warehouse and its proprietary quality control and picking systems, an AI-powered pricing engine and proprietary garment assessment tools and processes, and a stock of more than 120,000 quality-vetted garments ready for sale.
Luzon said that the new Percentil model will offer brands a solution for compliance with the EU Strategy for Sustainable and Circular Textiles, which will soon require plans for reuse, recycling and waste-reduction frameworks as part of environmental responsibility.
“With the EU leading global efforts in textile circularity, we see second-hand platforms evolving from niche alternatives into critical infrastructure for the fashion industry,” Luzon said. “Percentil gives us a front-row seat in this transformation.”
