Frank and Oak has raised $16 million in a Series C round.
The latest round of financing was led by Caisse de dépôt et placement du Québec. Other institutional investors include Goodwater Capital and Investissement Québec.
The company said the Series C round would allow it to “accelerate development of its digital experience and support its growth online in North America and other parts of the world. It [would] also bolster technological projects, through the implementation of artificial intelligence in its Style Plan program of personalized recommendations and through the development of integrated omnichannel technologies.”
The company said that it would continue to expand its product offering and propose additional styles, while investing in its supply chain.
Christian Dubé, executive vice president of Caisse de dépôt et placement du Québec, said, “While the digital transformation is now a rite of passage for retail businesses, Frank and Oak is one of the visionary companies that was a precursor of online commerce in Quebec.”
Ethan Song, cofounder and chief executive officer of the Montreal-based apparel and accessories firm, said in a telephone interview, “The capital raised will help us grow the business, and develop more innovative product for both men and women.”
Song added, “Sustainability will be a bigger theme for us. Innovation in textiles is more about sustainability and eco-friendly, with the product serving a purpose. Millennials have very strong values. They want to make sure [any production] contributes to the environment and the surrounding world we live in.”
The company began with a focus on men’s apparel, targeting urban entrepreneurs in the creative fields. It entered the women’s fashion market about 18 months ago, this time targeting women in the same fields. According to Song, she’s more conscious about where the apparel comes from, as well as the origins of the textiles.
The company is also developing a database that will help it create a unique shopping experience through both curation and personalization. The company already collects information from the questionnaire its members fill out, but now it will use more AI to fine-tune the fashion subtlety in the products that it offers to customers.