On April 10, 2025, London-based fashion tech platform Lyst announced it would be acquired by Japanese e-commerce leader Zozo in a deal valued at $154 million, a move set to reshape the trajectory of global fashion shopping and digital discovery. This transaction, expected to close before the end of April, makes Lyst a wholly owned subsidiary of Zozo while allowing it to operate independently from its London headquarters with Emma McFerran remaining as CEO.
Why Zozo Acquired Lyst—and What’s Next
With this acquisition, Zozo, which runs the massive fashion marketplace Zozotown in Japan, is making a strategic play to expand its international reach.
Lyst brings more than 160 million annual shoppers and connections to 27,000 brands and retailers, boasting unmatched data, deep AI expertise, and an influential market voice, especially through its renowned Lyst Index—the authoritative quarterly ranking of fashion’s hottest products and brands. Zozo, meanwhile, and is widely recognized for innovations in sizing and fitting, such as its ZOZOMAT and ZOZOGLASS technologies. The two companies are set to combine their expertise in AI-driven discovery, personalization, and fit technology, though specific details on this collaboration have not been disclosed.
A Shift in Global Strategy—and Valuation
The deal comes as a major shift for Lyst, which was last valued at $700 million in 2021 when a public offering looked imminent. With the acquisition price less than a quarter of that peak, the sale reflects both a cooling in post-pandemic valuations for asset-light e-commerce platforms and rising investor demand for proven AI innovation. Still, as Emma McFerran noted, this acquisition is a testament to the hard work of the entire Lyst team, and we are thrilled to join forces with Zozo. We share a common belief in the power of technology to shape the future of fashion, and this partnership will give us the opportunity to create even more innovative, personalized shopping experiences for our customers.
Independence, Scale, and Collaboration
A core aspect of the deal is that Lyst will operate as a standalone brand under Zozo’s ownership, with all teams remaining in the UK. For Zozo, the partnership instantly provides a robust foothold in the US, UK, and European markets, while for Lyst, the deal opens doors to significant investment and access to new tools and audiences.
Our space is evolving fast, and we share a vision with Zozo to build a better, brighter future for the industry, using AI and technology. With Zozo’s scale, expertise, and support, Lyst will be in an even stronger position to reimagine fashion discovery online, McFerran added.
The Power of AI and Shifting Consumer Experience
Both companies have been public about their commitment to AI as the future of retail discovery, with Lyst using data analytics and machine learning to drive personalized recommendations, inspire trend discovery, and reduce returns. AI at the core of future fashion discovery is the new joint ambition; together, they aim to bring joy back to fashion discovery, matching shoppers worldwide with relevant pieces across brands, sizes, and price points, seamlessly.
Zozo’s proprietary fit and measurement services (ZOZOFIT, ZOZOMAT, ZOZOGLASS), already in use far beyond Japan, are likely to enhance Lyst’s recommendations, personalization, and reduce the pain points that can turn digital fashion hunting into a chore.
AI, Data, and the Future of Fashion Platforms
This acquisition stands out in the current e-commerce landscape as a signal that scale and data alone are no longer sufficient. Retailers and platforms must combine these with real, actionable intelligence and efficient, global infrastructure. Both companies commit to redefining the fashion shopping experience for a new, AI-driven era—melding data, design, and digital experience to create a new standard for online commerce, as noted in the strategic announcement.
Industry Impact and Takeaways
This win-win for our fashion ecosystem of shoppers and partners, as described by McFerran, is emblematic of the fast-changing online retail landscape as technology, scale, and creativity converge. By pairing two innovation-forward companies, both want to inspire the world of fashion with smarter, more joyful shopping journeys, rooted in personalization and cross-border discovery.
Final Thoughts
In acquiring Lyst for $154 million, Zozo is not just gaining a platform but a strategic partner with best-in-class data, AI, and cross-continental scale. Together, they are poised to transform how the global fashion industry leverages technology—the next step in putting discovery, delight, and personalization at the heart of digital style.
