AI-powered mmERCH secures 6.4 million US dollars in investment

Blockchain-enabled Web3 fashion start-up mmERCH has announced a 6.4 million US dollar seed funding round led by Liberty City Ventures, with participation from 6529 Holdings LLC, Christie’s Ventures, and Flamingo DAO.

The round was also supported by chief executive and co-founder of Paxos Charles Cascarilla, Web3 investor Mike Jacobellis, collector and investor Daniel Maegaard (Seedphrase), American entrepreneur and model Karlie Kloss, luxury fashion designer and philanthropist Tory Burch, and Web3 fashion consortium Red DAO.

Launched in late 2023 by founder and chief executive Colby Mugrabi, mmERCH leverages “generative design to create collections of singular pieces or what mmERCH calls ‘neo-couture’,” and is set to release its inaugural collection in April.

The debut collection incorporates non-traditional elements such as artificial intelligence (AI) and blockchain technology to offer “one-of-a-kind clothing that fosters self-expression while connecting a community through a range of soon-to-be-announced experiences”.

Each item is created using generative algorithms and is accompanied by a non-fungible physical garment, uniquely tied to its digital twin on the blockchain, which verifies the authenticity and scarcity of each product.

Karlie Kloss and Tory Burch among investors in mmERCH seed funding round

Commenting on the investment, Mugrabi, said in a statement: “We are thrilled to have such a calibre of investors - all of whom are true visionaries across fashion and Web3. This investment marks a strong step towards realising our vision of 'neo-couture,’ offering collections of unique, one-of-a-kind products that have evolving digital and physical utility.

“With this latest funding, we're excited to expand operations and redefine the future of fashion, where individuality, creativity, and community flourish without compromise.”

The funding will be used to invest in the brand’s proprietary technology stack, expand its engineering team, and invest in subsequent collections, “all with the intention to create a modern brand and platform that is redefining the what, why, and how of fashion”.

Emil Woods and Murtaza Akbar, founding partners at Liberty City Ventures, added: “We are delighted to lead this seed funding round for mmERCH, founded and led by Colby Mugrabi. Colby is a visionary entrepreneur who has the drive, team, and resourcefulness to achieve great things.

“The fusion of AI and blockchain technology in fashion presents an exciting frontier. mmERCH is challenging convention in every aspect of the fashion industry, from ideation to supply chain to the customer experience. Their commitment to pushing boundaries and redefining the future of fashion aligns with our investment philosophy of supporting supply chain growth in web3.”