InStitchu carves out tech and wholesale assets in $12.8m deal
Australian made-to-measure menswear brand InStitchu has completed a multipronged transaction worth $12.8 million. The deal combines asset divestments with fresh equity to simplify the business and refocus on its consumer retail brand.
Founders James Wakefield and Robin McGowan (who were high school friends who launched InStitchu in 2012) engaged an advisor in July 2025 to explore a sale. At the time, the business was turning over more than $1 million a week.
Transaction snapshot
Deal value: $12.8 million across divestments and new equity
Deal multiples: N/A
Deal type: Asset divestments and equity raise
Investors: Dayang Group (increased stake from 20% to 35%); existing investors include Aura Group and Paul Greenberg
The transaction has three parts. First, InStitchu has sold its 45% stake in Jerome Clothiers, a wholesale made-to-measure platform based in Amsterdam and Melbourne. Second, InStitchu's proprietary software platform Taper.ai has been sold to Jerome Clothiers. InStitchu held 100% of Taper.ai and will continue to use it as its core operating system under a licensing arrangement.
Third, Chinese garment manufacturer Dayang Group — one of the world's largest made-to-measure manufacturers and an existing InStitchu investor — has increased its stake from 20% to 35%.
The combined proceeds from the divestments and fresh equity will fund InStitchu's retail growth. The company operates 13 stores across Australia with several more in the pipeline. It has made a major investment in a two-storey showroom at 14 Collins Street, Melbourne, and signed an exclusive partnership with Myer to offer in-store made-to-measure capability at its Pitt Street, Sydney location, as well as online.
"We've built infrastructure across retail, manufacturing and technology," Wakefield said. "This transaction allows each pillar to scale independently while further strengthening our global production partnership with Dayang."
InStitchu's core revenue driver is weddings, but the brand also sells custom shirts, business suits, coats and casual wear. It expanded into women's suits five years ago.
