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Hemster isn't accepting new investments

Hemster’s deadline was November 27, 2018

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Hemster

Hemster brings you perfect fit with next-gen tailoring services
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$232,608
Raised
527
Investors
Successfully funded and closed on November 27, 2018.
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Closed on November 27, 2018. Information may not be up-to-date. Campaign closed on November 27, 2018. Information displayed may not be up-to-date.

Documents

Republic (OpenDeal Portal LLC, CRD #283874) is hosting this Reg CF securities offering by Hemster, Inc.. View the official SEC filing and all updates:
Official SEC Logo Form C SEC.gov
Company documents
Hemster Crowd SAFE
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Hear from some of the 527 investors in Hemster


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Deal highlights

  • 230+% quarter over quarter growth since launch in 2017
  • Customers include Zara, Michael Kors, Club Monaco, Outdoor Voices, Reformation, and Bonobos
  • 400 grade A shopping centers in launch waitlist through partnerships with Westfield, Simon, Macerich, and GGP
  • Each order has a high margin
  • Founder previously grew IOT company from $20K to $10M as Head of Monetization
  • $250k raised to date from top angel investors in retail, real estate and local commerce
  • Patent-pending solution to customize ready wear at scale
    XRC Labs W18 Cohort 5 batch alumni

Your clothes don't fit you perfectly, but that's not your fault. 

Yet fashion retailers spend over $35B every year creating and managing multiple sizes.

As a result, retailers suffer from low conversion rates and high costs due to returns from imperfect fits, while shoppers have to go through a frustrating multi-step process to achieve their ideal fit.


Hemster tailors your favorite brand’s clothes to your body, right in the dressing room

Instead of traveling to a local tailor, now shoppers get their outfits tailored right in the store within minutes. Perfect fit guaranteed within 48 hours.

Our next gen tailoring services upgrade the traditional tailoring experience in these ways:

1. Get fitted in the dressing room

Shoppers get fitted right in the dressing rooms with Hemster’s proprietary, patent-pending RulerSticker in under a minute by the store associates.

RulerSticker allows anyone to accurately fit the shoppers, even without prior tailoring experience. 

2. Reliable and streamlined process

All orders are processed within 48 hours

3. The best local tailors for the job


We match each garment with the local tailor who is the BEST for the job based on their machinery, skill set and bandwidth.

4. We keep your perfect fit data


Growing 230+% quarter over quarter since launch


Since launch, Hemster has gotten phenomenal traction among flagship malls and premium retailers.

  • Average Order Value has jumped over 2x within six months

  • Shoppers have used Hemster, with 99% accuracy rate

  • Expanded from one pilot mall partnership to three live locations in ten months

  • Launched in-home services with premium residential property groups

  • Increased the monthly sales for retailers by 15% on average

Hemster is bringing tailoring to the biggest retailers and properties.

Major retail property groups, who control over 90% of flagship malls in U.S., are Hemster customers. 

Through these property groups, Hemster serves premium retailers such as Michael Kors, Club Monaco, and Reformation.

Hemster is also partnering with top residential property groups including Greystar, Crescent Heights, and Maximus, to expand our services to luxury apartments.



Simple Revenue Model

By streamlining the tailoring process, Hemster creates an arbitrage between what we charge customers (retailers and shoppers) and what we pay the tailors. 

Our revenue streams come from providing our tailoring services at retail locations and residential properties.

Hemster sees a sizeable order margin:

  • Average Order Value: $60+

  • Order Cost (tailoring and transportation): less than half.

  • We have extremely low marketing and user acquisition cost due to strategic business partnerships (retailers, residential properties, malls)

For In-Home services, we charge an additional $15-25 fitting fee to help protect our order margin.


Market

Traditional retailers are looking for unique in-store experiences to boost their traffic and conversion. Tailoring is their best bet.

Premium retailers such as Nordstrom, Bloomingdale’s, Men’s Wearhouse, and Armani group spend over $500M every year to offer full suite of complementary alteration services. Individual brands such as EXPRESS, J.Crew/Madewell, Gap group, and ZARA have more difficult time offering consistent services through local tailors.

With Hemster, both types of retailers can enjoy streamlined in-store tailoring services with guaranteed consistency in quality and rates across nation. From our initial pilot, retailers saw a 15% increase in their monthly sales once they started offering Hemster service to the shoppers. Through our partnership, we will cover 7,000 retail stores across 400 mall locations, serving 1M shoppers every year.

The e-commerce market is growing to reach $90B by 2020, yet 28% of apparel sales are lost due to imperfect fit.

Hemster can lower return cost for retailers drastically, through our proprietary Perfect Fit data that are initially collected during brick-and-mortar services.

With our data and nationwide tailoring services, all retailers can 1) Recommend the closest size for individual shoppers, and 2) Customize the ready wear sizes to the shoppers’ specific perfect fit measurements.


Competition

Hemster is the first mover in this market with scalability and accuracy. With our proprietary, patent-pending RulerStickers and localized supply chain of master tailors, Hemster is able to expand our services to new partners and new regions.


Previous Investors

Hemster has raised a $150,000 pre-seed round in Dec 2017 from XRC Labs and strategic angel investors.


What's Next

On track for Hemster’s national expansion

Our first market in San Francisco was a proven success. Now we are ready to replicate our success in other markets for rest of the year with our strong partners.


If we reach our stretch goal of $400K, we will accelerate our launch schedule into new markets where retailers and mall locations are already waitlisted. With the funds raised, we will hire regional teams (regional director, operational manager, fitters) for New York, Chicago, Texas, and Florida to accelerate our national expansion.

Founder & Team

Allison has actively pursued her entrepreneurial passion since her time at Berkeley, where she launched her first company. Prior to Hemster, she was a director of monetization at IOT startup Peel, where she grew the revenue from $20,000 to $10M in less than 18 months.

She has been selected to speak at Shoptalk, the retail industry’s largest conference, to showcase Hemster. She was also on a panel to discuss Retail Innovation at ICSC in the spring.


Paul Raffin (Retail Executive) - Advisor

Paul Raffin is an internationally-known C-Suite executive, with over forty years of experience managing consumer goods businesses across a wide spectrum of the Fashion Industry spanning department store retail, direct-to-consumer, vertical specialty retail, and luxury. Ruffin has held CEO, President or Division President roles at The Frye Company, Li & Fung USA-Mens, Kids and Entertainment Licensing Group, Frette, DZ Trading, Express, J. Crew, and Gant as well as Board roles with dELiA*s and Rosie Pope.

Bebe Chueh (Marketing Executive) - Advisor

Bebe Chueh is a co-founder and partner of Atrium LLP. With experience as a litigator and also having started her own company, AttorneyFee, which she sold to LegalZoom, Bebe understands what startup businesses need in terms of legal services at every stage.

Join us in disrupting ready wear one hem at a time!

Together we can bring personalized sizes to every shopper, so you don’t have to pick from small, medium or large.

Thank you for your support!

Deal terms


Valuation cap

$5,000,000

The maximum valuation at which your investment converts into equity shares or cash.
Learn more

Discount

0%

If a trigger event for Hemster occurs, the discount provision gives investors equity shares (or equal value in cash) at a reduced price.
Learn more.

Minimum investment

$100

The smallest investment amount that Hemster is accepting.
Learn more

Funding goal

$1.07M

Hemster must achieve its minimum goal of $50K before the deadline. The maximum amount the offering can raise is $1.07M.
Learn more

Deadline
Hemster needs to reach their minimum funding goal before the deadline ( ). If they don’t, all investments will be refunded.
Learn more
Type of security

Crowd SAFE

A SAFE allows an investor to make a cash investment in a company, with rights to receive certain company stock at a later date, in connection with a specific event. · Learn more

How it works

Documents

Republic (OpenDeal Portal LLC, CRD #283874) is hosting this Reg CF securities offering by Hemster, Inc.. View the official SEC filing and all updates:
Official SEC Logo Form C SEC.gov
Company documents
Hemster Crowd SAFE

Bonus perks

In addition to your Crowd SAFE, you'll receive perks for investing in Hemster.
Invest
$500
Receive
  • Shoutout on our newsletter
Invest
$1,000
Receive
  • Shoutout on our newletter & Featured on Hemster website as investor
Invest
$5,000
Receive
  • Shoutout on our newsletter, featured on Hemster website and video call with the founder

About Hemster

Legal Name
Hemster, Inc.
Founded
Nov 2017
Form
Delaware Corporation
Employees
3
Website
hemster.co
Social Media
Headquarters
Google Map location of of Hemster
845 Market Street , San Francisco, CA
Headquarters
845 Market Street, San Francisco, CA, United States 94103

Hemster Team
Everyone helping build Hemster, not limited to employees

Profile picture of Allison Lee
Allison Lee
Founder
Berkeley grad, grew the last company from $20K to $15M in a year
Profile picture of Angela Hung
Angela Hung
Head of Retail
Retail expert with global corp and high end boutique experience
Profile picture of Bebe Chueh
Bebe Chueh
Advisor (Former Co-founder)
Allison Lee
Founder
Angela Hung
Head of Retail
Bebe Chueh
Advisor (Former Co-founder)
Logo of Hemster

Hemster

Hemster successfully raised $232,608 from 527 investors on November 27, 2018
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Profile picture of Michael  Dubone
Heather, Ionut, Richard, Brian, Michael , and 522 others invested. 125 Reviews
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