A Swedish startup built on the Lovable AI platform has secured fresh investment as it pushes to become a leading solution for reducing product returns in the fashion industry. Lumoo has raised 6 million Swedish kronor, roughly 550,000 euros, through an angel investment round led by a strategic group of fashion and technology investors. Among them is Anton Osika, co founder and CEO of Lovable.
Tackling costly return rates in fashion
Product returns remain a major challenge for fashion retailers, costing the industry billions every year. Lumoo aims to solve this problem by offering advanced AI tools for product visualisation. Its platform supports virtual try ons, automated brand modelling, and content production. Built on Lovable’s technology, Lumoo claims its system delivers a more accurate and reliable experience compared with traditional virtual try on tools.
The company has already secured agreements with several major brands. These include Gant, Brothers, and AWNR Group, confirming early commercial traction as retailers look for ways to cut return rates and improve customer experience.
Funding and investor support
The latest funding round, worth about 550,000 euros, brings together a group of angel investors with deep experience in fashion and technology. The participation of Lovable’s CEO, Anton Osika, highlights the close relationship between the two companies and reinforces the potential seen in Lumoo’s model.
Lumoo plans to use the capital to accelerate international expansion and address growing demand from retail clients. The company is also investing in product development and new recruitment to scale its AI capabilities.
Osika noted that Lumoo is on course to achieve one million euros in annual recurring revenue in its first year, a milestone that would signal strong early momentum.
Leadership and vision
Lumoo was founded by Peter Thorngren and Henrik Skagerlind Fasth, who together bring more than 25 years of fashion and retail industry experience. Their background has shaped Lumoo’s focus on solving practical challenges for retailers and improving fit accuracy through more advanced digital tools.
Thorngren, who serves as CEO, said the investment is a clear endorsement of Lumoo’s rapid growth. He added that the new capital will support key hiring and faster development of the company’s AI platform, with the goal of positioning Lumoo as the leading global standard for fashion visualisation technology.
What this means for the industry
With retailers facing ongoing pressure to reduce costs and improve sustainability, reducing return rates has become a top priority. Better product visualisation and more accurate digital fitting tools are seen as important steps toward achieving this.
Lumoo’s fresh round of investment and growing list of brand partnerships suggest that demand for more reliable AI powered solutions is rising. As the company scales internationally, it may play a key role in how fashion brands address the long running problem of mismatched sizing and product returns.