# MTailor

A master tailor in your pocket

## Elevator pitch
What would the world look like if everyone could know the clothing they are buying will fit accurately before they place their order? And not just accurate, but perfect - using AI and advanced software algorithms, our patented technology scans measurement features of consumers and creates an identical digital clone of their body -- all using the phone in their hands?

- Canonical URL: https://wefunder.com/mtailor
- Entity ID: wefunder:company:8250
- Last updated: 2026-06-04T05:01:59Z
- Generated at: 2026-06-04T18:38:42Z

## Quick facts
- Profitable ecommerce business with $5M+ in annual revenue
- Backed by Y Combinator and Khosla Ventures
- Utilizing the largest commercially tested fit database to launch new SaaS visualization platform
- Cutting edge AI and computer graphics to end online returns
- 20% more accurate than a tailor - become the sizing platform for all online retail
- Metaverse implications by scanning your body and face to make one’s appearance realistic
- Founder turned down largest Shark Tank Deal ever & was recognized on the Forbes 30 Under 30 List

## Active fundraises
- wefunder:fundraise:6833: 4(a)(6) successful (USD)
- wefunder:fundraise:34864: 4(a)(6) successful (USD)

## Story
We've perfected the technology that retail companies need -- to create a significantly more profitable and better user experience.Online clothing returns represent a $13.5B per year problem for retail sales. 30% of clothing bought online is returned, with 70% of those returns due primarily to fit. Compare that to just 6% returns for clothing bought in-person, and it’s obvious that there’s a big problem here.Can you imagine a world where, before you buy something online, you know that it’s going to fit perfectly? With just a phone, our patented AI-based technology scans consumers to create a digital clone of their bodies. We then physically render how clothes will look on their exact bodies.By developing this technology with our own brand first, we have been able to close the feedback loop for iterating on the user experience and the technology. Now it’s ready for others.Since launch, MTailor has fit more than 100,000 customers, creating the largest commercially tested fit dataset in the world. More importantly, we're generating $5M+ annual revenue with this 'trojan horse' brand.The Total Addressable Market (TAM) is currently $15 billion per year and will only grow as ecommerce grows. MTailor’s technology will become the global standard for virtual apparel fit and try-on.Brands will drive adoption of MeasureUP because it will help them solve “online fit anxiety.” As more consumers interact with MeasureUP, we will gain a consumer base that more brands will want to tap into. So brands drive new consumers, and a growing consumer base draws in more brands.

## FAQ
1. **Is the valuation cap $27 million or $33 million? One page has $33m crossed out replaced by $27m. Documents on the SEC Edgar system show $33m. Which is it?**
   - Hey Stan, I see your confusion. The first $1M of investments will be at a $27M valuation cap; anything above that we raise will be $33M. The idea here is I really want our dedicated customers and fans to be able to get in and feel good that you're getting this lower valuation cap before we open up the round to the general public.
2. **How much are you looking to raise, and what are the expectations for how the capital will be used (key hires, etc.)? Further, what has you looking at crowd funding versus traditional venture investing? Will Khosla Ventures be involved in this round given prior investments? If ...**
   - Hey Christoph, you can see a more technical breakdown in the "Use of Funds" section in Other Disclosures, but at a high level, funds will go towards (1) refining our measurement technology for even better accuracy, (2) launching and developing 3D visualization previews and sizing recommendations for MTailor first and then external brands, and (3) building out and scaling the SaaS platform for (2). This will translate to hiring larger engineering and machine learning / AI teams and investing i...
3. **How did you arrive at the 27M valuation cap?**
   - Hi James, $27M is actually the early bird valuation cap; the regular one is $33M. We arrived at $33M from talking to both our current investors and external investors; that takes into account the profitable ecom business, the largest commercially tested fit dataset in the world, our patented technology, the market opportunity, and the strong team we have assembled. I set the early bird valuation cap at $27M, because I didn't want valuation (vs. $33M) to be a huge barrier for our biggest belie...
4. **Why do you repeatedly refer to MTailor as a "profitable" company when it is not yet profitable by your own financial disclosures? This appears disingenuous.**
   - Hey James, I can see the confusion there. The ecom side of the company is quite profitable; however, we've been working on 3D visualization (and the SaaS business) for ~2 years. We've been utilizing the profits from the ecom business to fund all the new technology development (meaning a lot of engineering and machine learning / AI resources). Now that we're so close to getting 3D visualization into the world for the v1, we want to step on the gas to speed up iteration time of the technology!
5. **Hi, did the investors in the 2014 SAFE have their investments converted to anything during the 2016 priced round or are they still waiting for an event? Will this SAFE affect them negatively in any way?**
   - Hey Justin, good question! All our prior SAFEs were converted to preferred equity in our last priced round. This SAFE will, like any type of additional funding, dilute the prior SAFE holders a bit, but not any different than any other shareholder. But it'll allow us to hire and build out our technology roadmap much faster, so everyone should win in the end from the round :-).

## Team
- Miles Penn (Founder)

## Recent posts
- Successful Raise, Closing Soon (2023-09-19T22:05:14Z)
- Massive Site Speed Upgrade (2023-05-26T20:55:39Z)
- New Team Member Updates (2023-05-10T20:41:30Z)
- Major Enhancements to our Core Technology (2023-05-01T19:55:08Z)
- MTailor Investor Webinar Replay (2023-03-31T00:05:35Z)
- MTailor Webinar - Deep dive into the company and the opportunity ahead (2023-03-22T21:00:12Z)
- Wefunder Launch Update - We're Live! (2023-02-23T15:07:39Z)

## Q&A
- Q: Hello Miles, is the technology MTailor uses for measuring patented? And if so are you planning on licensing the technology to other clothing platforms or is MTailor planning on manufacturing the all the potential clothes, uniforms etc in house. Also what would a 1K investment get a person like myself (whom uses your app) gain down the line?
  - A: Hey Gary! Yes, we have a patent, with more pending. We plan to build a platform where every brand can leverage our technology for measurements and 3D visualization. The term of this deal is a SAFE, which is a simple agreement for future equity. There isn’t a set price per share in a SAFE - rather, there is a "valuation cap" that the SAFE would convert at later. Exactly how many much will be determined at our next round of financing, but generally you should expect that if the value of the company is more than the valuation cap in the future, you’ll make money. You can learn more about SAFEs and SPVs here: https://help.wefunder.com/contracts. It is meant to and intended to become ownership in the company. The SAFE converts at IPO, acquisition or financing round: that means if the company were to IPO, then you would have the option to convert your purchase amount into shares.
- Q: Hi, Here is a quote from Albert Einstein “We can't solve problems by using the same kind of thinking we used when we created them.” My question is what changes in your thinking have you applied to your business to launch next week as to opposed to a year ago? Thanks and good luck
  - A: Hey Jeff, I always love a good Einstein quote! Vs. a year ago, we've built and proven the 3D technology internally. I only felt comfortable raising funds once we'd verified that this technology is going to deliver a really compelling experience for users
- Q: Hi, going forward is the focus going to be on the SaaS business (MeasureUp), the current ecommerce business, or both? Related qn: Is this funding round for the SaaS business, the ecommerce business, or both? Thank you!
  - A: Hey Bernard, excellent question! Without being glib, in some sense it will be both. We'd like to 5 - 20x the ecom business, which I think is highly doable, especially given that we're the only way to order a professionally tailored suit without stepping into a store. But the primary focus of the funds will be the SaaS business and our technology development; that being said, new technology will usually go inside MTailor first. For example, our 3D visualization technology is going to launch inside of MTailor before MeasureUP, and I expect that to boost the MTailor business.
- Q: How much are you looking to raise, and what are the expectations for how the capital will be used (key hires, etc.)? Further, what has you looking at crowd funding versus traditional venture investing? Will Khosla Ventures be involved in this round given prior investments? If not, why not?
  - A: Hey Christoph, you can see a more technical breakdown in the "Use of Funds" section in Other Disclosures, but at a high level, funds will go towards (1) refining our measurement technology for even better accuracy, (2) launching and developing 3D visualization previews and sizing recommendations for MTailor first and then external brands, and (3) building out and scaling the SaaS platform for (2). This will translate to hiring larger engineering and machine learning / AI teams and investing in B2B sales. Re:crowd funding, we have a lot of fans who believe in us, our technology, and the future, and I'd love for the upside on our future to be owned by many of our believers, as opposed to a traditional VC that lacks passion for us and is investing in just the numbers. KV sits on the board and is still a part of the company, but they won't be adding fresh capital to this round. They have already reached their typical "ownership threshold" in us, having led 2 of our funding rounds.
- Q: it has been more than a year since last update, we need to know what is new
- Q: Nice proyect!
  - A: Thank you!
- Q: Lots of questions questions here (sorry!): 1) if things have been profitable, why did cash drop to half of what it was at the end of 2021 (the details page shows $267,000 cash on hand in Aug 2022), 2) on the statement of operations, there is a line for "Other Income" which brought in about $600K. What is included in this other income?, 3) you've got $120K of machinery under property and equipment. As a software company, I would expect very little machinery, what machinery would Mtailor have?, 4) is there any actual finished goods inventory on hand stored in a warehouse? I see a significant balance for inventory but it seems to high to just be fabric and trims, 5) is Mtailor renting out an entire factory based in Bangladesh and is the clothing produced there?, 6) how is Med-Tailor involved with MTailor legally, is it a subsidiary of MTailor? Are any software development costs offset to Med-Tailor?, 7) What were sales in 2019 and what were sales in 2022? I would have thought that 2020 would have been a worse year for COVID than 2021 since the US opened up in 2021. Since marketing costs are only 20% of revenue, I would imagine you could have spent more in marketing in 2021 to grow beyond 2020's revenue, 8) what are your remake and refund rates? How often are customers asking for adjustments? What happens to the inventory that is returned back due to a remake or refund?, 9) how large is your development team up to this point? And are they overseas or on-shore?, 10) how much pay is the executive team taking?
  - A: Hey Bo! 1. The ecommerce side of MTailor has been profitable. But we've ramped up engineering spend for new technology, primarily focused on 3D visualization. So the ecom profits have been used to fund that R&D. 2. Other income was a combination of Bangladesh and US government credits and incentives. 3. Up to now, we've been a vertically integrated direct to consumer apparel company. We own everything from the brand to the technology to the manufacturing. We built, own, and operate our own factory in Bangladesh that manufactures all our clothing. This has allowed us to have high gross margins, fast delivery times, and tight quality control. 4. No finished goods, as everything is made on-demand and custom when someone orders from us, typically in 1 - 2 days from order (the rest of the time is shipping / transit time). So it is just raw materials (the bulk being fabric) to make people's custom clothes. 5. We have our own subsidiary in Bangladesh that manufactures all our clothing. We rent the factory space but own the equipment, employ the people, etc... While unusual, we found normal clothing manufacturers do a terrible job for custom clothing - they were slow, expensive, failed to meet exacting quality standards (we worked with vendors for years). When we opened our own manufacturing, our margins went up and delivery times went down. We could also do things like create custom fit jeans, because we owned the product development. 6. MedTailor is legally a separate company. It isn't a subsidiary. We get paid by them to supply measurements via the MeasureUP app and to manufacture and ship their clothing. 7. Sales in 2019 were $9.6M, and we haven't quite closed our 2022 books yet, so I can't give a final number there. 2020 vs 2021 - covid was pretty similar. And yes, our marketing has done really well, especially as we had to focus during covid. But Apple's release of ATT (https://www.singular.net/glossary/app-tracking-transparency/#:~:text=App%20tracking%20transparency%20(ATT)%20is,by%20companies%20other%20than%20Apple.) made running and scaling advertising extremely difficult, so we have been figuring out how to successfully navigate that. 8. We don't publicly release this for competitive reasons, but they're low enough for our gross margins to be pretty high, as returns subtract from gross revenue (so net revenue is net of returns) and remakes show up as added COGs. You can read from many of our comments that we generally do a great job re:fit. 9. We have scaled the development team to 8 full-time and are planning to expand. 10. We aren't breaking our executive pay separately, but we run pretty lean as far as people and salaries go.
- Q: How did you arrive at the 27M valuation cap?
  - A: Hi James, $27M is actually the early bird valuation cap; the regular one is $33M. We arrived at $33M from talking to both our current investors and external investors; that takes into account the profitable ecom business, the largest commercially tested fit dataset in the world, our patented technology, the market opportunity, and the strong team we have assembled. I set the early bird valuation cap at $27M, because I didn't want valuation (vs. $33M) to be a huge barrier for our biggest believers.
- Q: Is the valuation cap $27 million or $33 million? One page has $33m crossed out replaced by $27m. Documents on the SEC Edgar system show $33m. Which is it?
  - A: Hey Stan, I see your confusion. The first $1M of investments will be at a $27M valuation cap; anything above that we raise will be $33M. The idea here is I really want our dedicated customers and fans to be able to get in and feel good that you're getting this lower valuation cap before we open up the round to the general public.
- Q: Anyone want to buy my stake from me, I have 1k invested.
- Q: This is a great concept with great potential. I would like to see more updates on your progress. Its been a while.
  - A: Hey Daniel, did you not get our latest monthly update (sent via email) that went out to all our investors? If not, I will personally resend to you
- Q: Is Walmart poised to take over MTailor's first mover advantage? Walmart’s Embedded AI Improves Everything from Supply Chain Management to Fitting Room Tech The world’s largest retailer, Walmart, is using embedded AI across the company to improve both the company’s operations and the customer experience. For instance, Walmart has large language models (LLMs) like GPT-4 to create nearly two dozen different experiences that use the platforms for natural language understanding capabilities. This includes a chatbot that 1 million Walmart associates interact with for customer care. In an interview with VentureBeat in April 2023, Desirée Gosby, Vice President of Emerging Technology at Walmart Global Tech, said generative AI “will be as big a shift as mobile, in terms of how our customers are going to expect to interact with us.” Here are four distinct ways Walmart is using AI: ... Second will be the deployment of AI-powered fitting room tech. Imagine Walmart’s dynamic virtual fitting room, which will allow customers to shop for clothes online and see how a given item will actually look on them. The company’s “Choose My Model" experience offers customers a choice of 50 models between 5’2” – 6’0” in height and sizes XS – XXXL. This allows customers to choose a model who best represents their height, body shape, and skin tone. Eventually, such generic body models will be replaced by your own detailed avatar—derived from a high-resolution body and facial scan of the type already available today. Imagine having the AI system spin up a fashion show with 30 copies of your avatar walking down the runway modeling 30 different outfits for your selection.
  - A: Hi John, I am not worried. Big companies announce lots of stuff that they have no ability to execute on. Walmart in particular purchased Zeekit (https://corporate.walmart.com/news/2022/03/02/walmart-launches-zeekit-virtual-fitting-room-technology), and IMO, that's gone nowhere. Best, Miles
- Q: when next are you raising on wefunder?i suppose this round has closed
  - A: Hey Bankole, we don't have any definitive plans currently to raise in the near-term on Wefunder.
- Q: Will you eventually be offering women's clothing?
  - A: Hey Lora! We sell women's jeans right now but would love to eventually expand into a variety of products for women
- Q: Hello Mr. Miles ,this part of the risk section is not clear to me (The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.)
  - A: Hi Ahmad! Apologies for my delayed response. The investment is as a SAFE - https://help.wefunder.com/contracts/304785-safe-simple-agreement-for-future-equity. It is in many ways an easier way to raise financing, but the expectation is, upon a future fundraising event, it will convert to equity via the Valuation Cap. A future equity round would likely be from venture capitalists, but it could be an IPO. Please let me know if that didn't clear it up for you!