AI startups like Alta and Phia are revolutionizing fashion retail with tech-driven solutions
A new wave of startups is reshaping fashion and retail with AI-driven solutions. Alta, an AI-powered styling app, has just secured $11 million in seed funding led by Menlo Ventures. Investors include luxury giant LVMH and Michelle Obama’s stylist, highlighting strong industry backing for the 28-year-old founder’s vision.
The funding surge reflects broader innovation in retail tech, where young entrepreneurs are tackling challenges from second-hand fashion to social commerce.
Alta was founded by Jenny Wang, a Harvard-trained engineer now serving as CEO. The app creates a digital wardrobe for users, suggesting outfits and recommending new purchases based on personal style. Its $11 million seed round signals confidence in AI’s role in personal shopping.
Elsewhere, Phoebe Gates, 23, and Sophia Kianni launched Phia, an app merging full-price, discounted, and second-hand fashion. Their platform taps into the growing demand for sustainable yet accessible clothing options. Meanwhile, On—backed by tennis legend Roger Federer—expanded its resale platform, Onward, to include shoes and plans to add clothing by late 2025. Momox, Europe’s leading recommerce player, also upgraded its pricing tools for fashion in October 2025.
Other startups are targeting niche gaps. Bridge and Carson Hart developed Hoppn to refine colour-based searches for Shopify brands. SwiftSku, founded by Mit Patel and Daniel Mazur, offers a point-of-sale system that boosts margins for small retailers through automation. In beauty, entrepreneurs are leveraging social media followings to sell specialised skincare products.
Direct-to-consumer strategies are evolving too. Sarah Ganzenmuller’s Rediem focuses on holiday sales and in-person events, while Pinpoint’s Joshua Cohen and Justin Krokoff use AI to engage customers directly via DMs. These varied approaches show how technology is being tailored to different retail needs.
The latest funding rounds and product launches point to a rapidly changing retail landscape. AI tools, resale platforms, and targeted marketing are becoming central to how brands interact with customers. With major backers and young founders driving innovation, these startups are set to influence shopping habits in the years ahead.
