When shopping online, many of us tend to purchase multiple sizes of the same item, eventually returning all but the one perfect match. But this method has unintended consequences. Not only can stores lose revenue due to shipping costs or an inability to resell some items, but the return process also contributes to carbon emissions.
To address these issues, NC State alum Catalina Del Risco teamed up with Ileana and Andrea Del Risco to co-found Modi in 2022. Building on the team’s experience (such as Catalina’s background in textile technology and passion for sustainability), the startup partners with apparel brands to help build a more sustainable and profitable supply chain, using software tools to accurately suggest sizes for consumers.
Modi was part of this summer’s cohort with the Andrews Launch Accelerator, an NC State program assisting early-stage startups. Specifically, Modi had a sponsorship from the Wilson College of Textiles at NC State to participate in the accelerator. Catalina, now the startup’s COO, said she’s been able to make great connections across the entrepreneurial ecosystem, and within the coming months she hopes to bring on a strategic advisor and begin fundraising.
So far, Modi has partnered with 30 apparel brands, most of which are located in Latin America, with some also in Indonesia and Australia. Del Risco and her co-founders discovered that apparel returns are a particularly strong pain point for companies outside the United States, where shipping can be costly.
In the U.S., meanwhile, nearly a quarter of all online clothing purchases are returned, resulting in cumulative shipping emissions far beyond what occurs in a given, single delivery. Del Risco said some returns cannot be resold due to changes in trend cycles—which means the buy-and-return process winds up contributing to landfill waste as well.
“Even though on an individual level, it might not seem like a big impact, collectively it’s a huge, huge impact,” she said.
Because most returns occur due to sizing, Del Risco said, Modi’s solution offers virtual fittings whereby consumers can upload photos or manually input measurements to find their correct size. The platform is GDPR compliant, so no photos are saved or stored.
Modi is currently pursuing a patent for its 3D garment mapping technology, which is a 3D representation of how clothing will look and drape on the customer.
Modi’s software integrates with Shopify, an ecommerce platform that many apparel retailers already use. The co-founders are currently working on a second iteration of their product, which is standalone software that will be compatible with additional ecommerce sites.
Retailers Using Modi
Apparel businesses can download Modi’s app, and from there gain access to all of the platform’s functionalities. In addition to virtual fittings, Modi provides data insights for the business. The software anonymously plots actual body measurements to give businesses insights into what their customer base looks like, and that data can then be used throughout the design and production process.
For example, BAOBAB is a sustainable swimwear company based in Colombia that has partnered with Modi. Del Risco said that by using Modi’s data analytics, the company was able to alter its apparel sizes to more accurately fit customers.
Clothing company Agybo, meanwhile, received $50K in additional revenue directly attributed to Modi, after partnering with the startup for two months.
Modi’s current customer base consists of small- to medium-sized businesses with $1-10 million in annual revenue, but the startup is looking to expand to enterprise businesses and has begun conversations with Under Armour.
QUICK BITS
Startup: Modi
Co-Founders: Catalina Del Risco (COO), Ileana Del Risco, Andrea Del Risco
Founded: 2022
Location: Miami
Website: modifit.io
Funding: Bootstrapped; seeking funding
Revenue comes from a monthly subscription model, with the cost depending on the average order volume of the brand. There is also a usage fee, such that the brand is charged a small percentage of every order made using Modi.
Modi is pursuing funding in the coming months, which Del Risco said has been challenging for three women of Latin American descent working within the white male-dominated venture capital industry. From conversations with potential investors, Del Risco said she has encountered people that don’t understand the purpose of Modi because they don’t shop online.
“Overcoming that bias has been a challenge, and just knowing that the landscape in the VC world doesn’t necessarily look like us,” Del Risco said.
Nevertheless, the team is sticking to its roots. Modi’s name comes from the Spanish word for fashion, which is “moda.” Del Risco said she and her co-founders chose this name to tie into their Latino culture.
