Dive Brief:

• The online style recommendations site Stitch Fix announced that it has raised $12 million in funding for its concept, which uses customer data and algorithms to sell clothing assortments.
• Benchmark Capital is leading the round of investment, and Bill Gurley, who is a partner at the firm, will join Stitch Fix's board, as will Marka Hansen, former president of North America for clothing at Gap, and John Fleming, who served as chief merchandising officer at Wal-Mart Stores Inc.
• Gurley praised Stitch Fix's efforts in an interview with Reuters, saying that most of its growth comes from organic word-of-mouth recommendations, which he finds appealing.

Dive Insight:

Online retail is getting competitive right now, with nearly everyone forced to go up against Amazon.com and new niche, luxury and subscription-based services popping up with style in mind. Some powerful people with lots of experience in retail seem to think Stitch Fix has a good thing going right now, though, so it's definitely a site to watch as this space evolves.