Style Wire
NOW READING Michaela Wessels, CEO of Style Arcade FUNDING $8M Series A led by Acadian Software, Nov 2022 REACH 6,000+ users across 28 countries CLIENTS The Iconic • Princess Polly • White Fox • Aje • Christopher Esber • Dion Lee GROWTH 180% in a single year WORD OF MOUTH 63% of revenue SIZING 95%+ accuracy within 12 months RETURNS 33% average reduction
Profile Founder · CEO SYDNEY / NEW YORK · EST. 2018

Michaela
Wessels

The former merchandise planner who kept losing arguments with a spreadsheet, and then built the software that would win them.

Michaela Wessels, co-founder of Style Arcade, photographed with co-founder Tristan Hoy
Sydney, 2023. Wessels (left) with Style Arcade co-founder and CTO Tristan Hoy in the Forbes Australia sit-down that ran a few weeks after the company closed its Series A and started renting an apartment in New York.

The Lede

A buyer who built the software she wanted, and then sold it to the people who used to sit next to her.

Michaela Wessels runs Style Arcade, a Sydney-based analytics platform that fashion brands use to decide what to buy, how much of it, and in which sizes. The company was co-founded in 2018 with Tristan Hoy, its CTO. It is now used by roughly 6,000 merchandise buyers and planners across 28 countries, has raised $8 million in a Series A led by Acadian Software, and counts a curious mix of ecommerce operators and cult designers as customers: The Iconic, Princess Polly, White Fox, Aje, Christopher Esber, Dion Lee.

You can construct a familiar founder narrative from those facts: Australian SaaS, vertical software, AI-adjacent, quiet US expansion. The narrative is technically accurate and mostly beside the point. The point is that Wessels used to be the customer. She spent more than a decade in finance and merchandise planning at Truworths in South Africa, at Lacoste, and finally at The Iconic. Her recurring line about that decade is direct in the way industry-native founders' lines tend to be: "Everything was manual - everything was spreadsheets. I was buried under paper and Excel."

The buying job, if you have not done it, is a job of guessing under constraints. A buyer for a mid-sized fashion brand picks thousands of SKUs per season, across sizes, colours, price points, and delivery windows, and then tries to reason about what a customer she has never met will actually buy in eight months. She does this in Excel because Excel is the only tool flexible enough to hold the mess, and she does it badly because Excel is not flexible enough to hold the mess. Every over-order becomes markdown. Every under-order becomes a stockout, which becomes a customer who buys the black instead of the hot pink. "There is a saying in retail," Wessels has said, "that she comes for the hot pink but she stays for the black." Style Arcade is a piece of software about the black.

The mechanics: connect Style Arcade to a brand's ecommerce and inventory systems and it reconstructs the entire buying and planning cycle - product forecasting, assortment planning, size-curve optimization, margin math, returns analytics, campaign performance - inside one visual environment. The interface leans hard into images because fashion buyers reason about images, not SKU numbers. "Gone are the days of looking at SKU number, it doesn't tell you anything," Wessels says. "The retail customer buys products based on the look of it first and foremost. If we're unable to draw the link between data and the visual elements of the product then we're not seeing our range from the customer's eyes."

That the whole thing is now marketed as AI-driven is true enough - the platform makes recommendations, forecasts styles at SKU depth, and quietly optimizes size curves toward what the company claims is 95%+ accuracy inside twelve months - but Wessels talks about it less like an AI product than like a well-designed merchandising floor with better instruments. Forbes called it "first of its kind." Style Arcade puts the phrase in press quotes. The truer description is that it is the first piece of buying software that looks like it was designed by a buyer, which it was.

Style Arcade's first pilot was not a pilot in the venture sense but a soft insurgency. Wessels rolled it into The Iconic, where she had been on the buying team, and it picked up three hundred users inside the buying department before the company had a proper go-to-market. She has described it as her "secret weapon." The word to notice in that sentence is "weapon." She was still competing with peers in her old job while selling them a way to do it better.

What she did next, in retrospect, is the more interesting decision. Between 2018 and 2022 Style Arcade did not take a conventional seed round. Wessels went to Lighter Capital for three tranches of revenue-based financing - about $670,000 AUD in total - and used it to hire in sales and engineering while the platform grew 180% in a single year. She then, in November 2022, raised the $8 million Series A led by Acadian Software, a US firm that specifically underwrites vertical SaaS businesses it can plausibly call "first of its kind." Roughly 63% of Style Arcade's revenue at the time was arriving through word of mouth inside the fashion industry, which is a hard number to fake and an even harder one to explain to a growth investor without smiling.

Wessels relocated to New York in the wake of the raise, and Style Arcade opened offices there and in London. The New York move is worth noting because it is the founder's move, not a hire's. The company's US expansion is being sold, market by market, by the person who built the product and used to buy the product. That is unusual. In most Australian SaaS stories the founder ships a Head of NA out of Sydney; here she went herself.

She is a Bachelor of Commerce from Nelson Mandela Metropolitan University, in the Eastern Cape of South Africa. She keeps her public persona restrained. Podcasts, panels, a Style Arcade Instagram reel now and then. The interviews are all variations on the same story, told without ornament: I was a planner, planning was broken, so I fixed it.

By The Numbers

Metrics Style Arcade repeats often enough that they may as well be true.

Standard vendor caveat applies. Wessels quotes these on stage, in podcasts, and in press.

180%Revenue growth · single year
95%+Sizing accuracy inside 12 months
33%Average returns reduction
5.2×Average customer ROI

Where the fashion buying pain lives

Buying accuracy
$163B
Word of mouth
63%
Brand growth lift
74%
Size accuracy target
95%

Client Ledger

Who lets Style Arcade see the buying sheet.

A mix of pure ecommerce operators and designer labels that are famously precious about their taste. That both types of buyer landed on the same tool is, in venture capital terms, the thesis.

The Iconic
Princess Polly
White Fox
Aje
Christopher Esber
Dion Lee

Career, briefly

A timeline that starts on the buying floor.

EARLIER
Merchandise buying, planning, and consulting at Truworths, Lacoste, and The Iconic. Fifteen-plus years working in retail's back office.
2018
Co-founds Style Arcade in Surry Hills, Sydney, with CTO Tristan Hoy. First pilot deploys inside The Iconic.
2020–22
Three tranches of non-dilutive revenue-based financing from Lighter Capital. Company grows 180% in one year.
2022
Closes $8M Series A led by Acadian Software. Announces expansion to New York and London.
2023
Relocates to New York to run North American growth in person.
2024
Featured on Fashion Business Mindset, eCom@One, and Legendary Podcasts. Style Arcade passes 6,000 users across 28 countries.

Quote Book

Things Michaela Wessels has said in public.

"Everything was manual - everything was spreadsheets. I was buried under paper and Excel."

"Gone are the days of looking at SKU number, it doesn't tell you anything."

"The retail customer buys products based on the look of it first and foremost. If we're unable to draw the link between data and the visual elements of the product, then we're not seeing our range from the customer's eyes."

"Style Arcade was first launched into The Iconic and it became my secret weapon, as well as creating an army of avid fans in the buying department with over 300 users at The Iconic alone."

Details worth keeping

Fun facts, in the newspaper sense.

Origin

Port Elizabeth to Surry Hills

Wessels earned her Bachelor of Commerce from Nelson Mandela Metropolitan University in South Africa before landing on The Iconic's buying team in Sydney.

Capital

Three RBF tranches, then Series A

She took roughly $670K AUD from Lighter Capital in three non-dilutive rounds before ever running an equity raise. When the equity came, Acadian led at $8M.

GTM

Word of mouth as moat

Around 63% of Style Arcade's revenue historically came from referrals inside a small, gossipy industry. A metric like that is hard to reverse-engineer.

Product

Visual before numerical

Style Arcade's interfaces lean on product imagery because buyers reason about product imagery. It is the least obvious and most important design choice in the product.

Team

Christine Reed, COO

Formerly at Under Armour, Harrods, and The North Face. The exec bench is buyers who became operators, not operators who learned buying.

Move

New York, in person

Wessels moved to New York after the raise. The US expansion is being led by the founder, not a delegated country head.

Reading list

Angles a reporter should take next.

Story

How The Iconic became the beta

The origin story of a B2B SaaS that used its founder's former employer as an unofficial pilot program.

Story

The $163 billion buying-accuracy problem

The number Style Arcade quotes on stage. What it actually measures, and who is measuring it.

Story

Revenue-based financing before Series A

Wessels' capital playbook, and what it cost her not to raise a seed round.

Story

Sydney to SoHo

The founder-led US expansion, and what she is changing about the go-to-market in market.

Story

Aje, Dion Lee, Christopher Esber

Why cult designer labels, of all customers, are betting on merchandising software.

Story

Size curves are the boring answer

The least sexy, most profitable fix in fashion, and Style Arcade's claim to have hit 95%+ inside twelve months.

Frequently asked

FAQ.

Who is Michaela Wessels?

The CEO and co-founder of Style Arcade, a Sydney-based fashion retail analytics platform used by brands including The Iconic, Princess Polly, White Fox, Aje, Christopher Esber and Dion Lee.

When did she found Style Arcade?

She co-founded Style Arcade in 2018 with Tristan Hoy, the company's CTO.

How much has Style Arcade raised?

Style Arcade raised an $8 million Series A in November 2022, led by Acadian Software, on top of earlier revenue-based financing from Lighter Capital.

What did she do before Style Arcade?

More than 15 years in finance, merchandise buying, planning, and consulting, with formative roles at Truworths, Lacoste, and The Iconic.

Where is she based?

Style Arcade is headquartered in Surry Hills, Sydney. Wessels relocated to New York to lead the company's North American expansion.

Elsewhere

Where to find Michaela Wessels.