retraced Revenue, Valuation & Funding (2024)

Retraced reached approximately $50,000 in monthly recurring revenue by late 2021, based on roughly 50 paying customers at an average of about 800 euros, or approximately $1,000, per month. Peter Merkert confirmed the $50,000 monthly figure when the host calculated it directly from the customer count and average price.

Retraced was serving approximately 50 paying customers as of late 2021, up from a much smaller base during the COVID-19 period in 2020. Customers include fashion brands, suppliers, and manufacturers across multiple tiers of the supply chain.

The average revenue per customer is approximately 800 euros per month, which Merkert confirmed, noting that pricing varies significantly by client size. Smaller companies with limited platform needs pay less, while larger clients with more functionality requirements pay more. Contracts are typically 12 months in length, with some clients signing two-year agreements.

New customers generally go through a pilot project lasting three to six months before converting to a paid subscription. Merkert said every customer who completed a pilot converted to a paying client, and some converted before the pilot period ended. The company reported losing only about two customers total, representing a churn rate well below 2 percent, though Merkert acknowledged the 12-month contract structure may limit visible churn in the near term.

Retraced operates a subscription SaaS model, charging fashion industry participants a recurring monthly fee to access its sustainability management platform. The average contract value is approximately 800 euros per month, with 12-month contracts as the standard term and some clients committing to two-year agreements. At 50 customers and that average price, the implied monthly recurring revenue is approximately $50,000.

The platform is designed so that lower-tier supply chain participants, such as small suppliers, may use it without paying, contributing data that flows upward to brands and retailers who are the primary paying customers. This freemium-adjacent structure is intended to drive network effects across the supply chain.

Gross margin, burn rate, runway, CAC, LTV, and profitability were not discussed in the interview. The company was exploring revenue-based financing as a complement to equity funding to manage dilution.

Retraced had a team of 24 people as of late 2021, with 14 of those being engineers. The engineering-heavy composition reflects the platform's technical complexity in connecting multiple tiers of a non-digitalized industry. Team structure beyond the engineering headcount was not detailed in the interview.