StretchSense chief technology officer Todd Gisby (left) and chief executive Ben O’Brien

StartToday owns and operates Japan’s largest online retailer of apparel and accessories, Zozotown, and Japan’s largest fashion coordination app, wear.jp.

Stretch sensor technology is the next breakthrough innovation in wearable technology, providing real-time precision information for soft objects. The sensors are worn on the body or on clothing and when a user moves, the sensor stretches, transmitting motion information to an app.

In a statement, StretchSense chief executive Ben O’Brien says StartToday’s access to the Japanese market as well as its expertise in fashion, distribution, and e-commerce makes it a perfect strategic investor for StretchSense.

StretchSense chief technology officer and co-founder Todd Gisby tells NBR the deal was a “strong cultural fit” and it’s possible StartToday’s e-commerce channels could distribute its products in the future.

“Obviously we’re in slightly different industries but our futures are on a collision course in terms of in terms of StartToday’s fashion and e-commerce business and us being sensors for wearable devices,” he says.

Mr Gisby wouldn’t comment on the amount of the investment or how much of a stake StartToday has in StretchSense, saying it’s sensitive information because StartToday is a listed company. However, he says it is larger than previous capital raisings, such as its December 2014 raise of $500,000.

Mr Gisby, who owns 19% of the Auckland-based company, says the capital will be used for research and development, marketing and sales, and to expand offshore presence.

StretchSense has 200 customers in 28 countries, which are incorporating its sensors in a wide range of applications in areas including healthcare, sports and motion capture.

The company does not yet have a consumer product but Mr Gisby says the focus will be on to integrate the sensors in other companies’ products.

StretchSense employs 21 full-time staff.

It was spun out of the Auckland Bioengineering Institute’s Biomimetics Lab, and has previously raised funds from the Flying Kiwi Angels and the New Zealand Venture Investment Fund, which owns 9.7% of the company.

NBR