Snap’s latest story: An acquisition to power up its ecommerce apparatus
The Hustle

Snap’s latest story: An acquisition to power up its ecommerce apparatus

Snapchat sees commerce as the future of its business. It’s taking a major step toward that future by buying Fit Analytics.

Snaps may start and finish in a matter of seconds, but the company’s growth is likely to remain steady for quite some time.

Snap now boasts 265m daily users (+22% year-over-year) — and on average those users open the app 30 times per day to collectively snap 5B+ photos.

Now, Snap’s looking to monetize its users through an acquisition of Berlin-based retail tech startup Fit Analytics.

Snap is making an ecommerce push

Fit Analytics builds tech for ~18k retailers — including The North Face, Foot Locker, and Patagonia — that helps shoppers choose the right sizes for the clothing they buy online.

It’s a strategy play: Snap is looking to diversify its $911m ad-driven revenue by launching an ecommerce retail barrage.

Snap is already partnering with NYX Professional Makeup, Ralph Lauren, and Perfect Corp for AR clothing try-on campaigns.

The purchase couldn’t come at a better time

Snap’s got a Gen Z army ready to fire at will. Roughly 90% of 13- to 24-year-olds in the US are on Snapchat, and they’re bringing the heat with $323B in direct buying power.

Per research firm Piper Sandler, the “Selfie Budget” (which includes clothing, fashion accessories, personal care, and shoes) made up 40% of US teens’ spending in fall 2020.

Bottom line: Snapchat’s got the teens, and Fit Analytics has the retail smarts. Ergo, this deal may need a “made in heaven” filter.

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