From computer vision-driven technologies aimed at cutting down on apparel returns by enabling consumers to utilize advanced sizing tech to artificial intelligence and machine learning-driven software that helps to prevent counterfeiting, piracy, and digital impersonators, companies across the retail segment are introducing new tools that make fashion commerce – and retail more broadly – “more nimble, sustainable, and engaging for shoppers.” At the same time, the striking rise of e-commerce, especially in the wake of the pandemic, and the post-pandemic call for companies to provide consumers with “an exponentially deeper level of engagement [both] online and offline,” per McKinsey, has led to the rise of an array of B2B SaaS solutions-providers that are looking to help transform the retail segment.
Research published by Google’s Cloud business in November 2020 (and reported by Wired) revealed that retailers were “looking to use AI within ten different areas of their business – from demand prediction to customer loyalty schemes and product personalization.” More recently, McKinsey stated in 2021 that “the operational potential of technology is becoming ever more apparent,” with fashion companies that embed AI into their businesses models now – in order to “enable new logistics and sales-fulfillment options (such as click-and-collect and drive-through), fuel innovative ways of customer acquisition, help predict and manage inventory to create a more resilient supply chain,” etc. – standing to see “a 118 percent cumulative increase in cash flow by 2030.” On the other hand, the consultancy stated that companies that “are slower to invest in digital technology will lag behind, and could see a 23 percent relative decline.”
Meanwhile, Meticulous Research expects the value of the AI-in-retail market, alone, to reach $19 billion by 2027.
Against this background and in light of enduring efforts to bring new tech to the retail market, we have compiled a tracker of funding and M&A to provide a broad overview of tech-centric investments in fashion and the broader retail space, and shed light on what the trajectory of this segment of the market looks like more broadly.
Oct. 30, 2024 – Modash Raises €12M in Series A
Modash has raised a $12 million Series A led by henQ, a Dutch VC firm. The Estonia-based startup, which touts itself with providing “everything consumer brands need to build iconic influencer marketing programs – without the chaos,” will use the new funds to make engineering and product improvements across its platform, including its global influencer payment solution and AI-enabled creator search. Led by CEO and Founder Avery Schrader, Modash is a provider of a creator partnerships platform that empowers consumer brands to discover, manage, and scale their influencer marketing efforts globally. Its client include Google, Montblance, Farfetch, and Victoria’s Secret, among others.
Oct. 29, 2024 – GIFTD Raises €535K in New Round
GIFTD has raised €535,000 in angel funding from Thies Network, quantumReality and impact investor ULTRA.VC. The Berlin-based startup turns unsold brand stock into exclusive marketing giveaways for brands and retailers, allowing users also to give away secondhand or unsold items within the platform’s community. Since launching in June GIFTD has onboarded Fabletics, handbag brand Liebeskind Berlin, and streetwear label Irie Daily, and says that five large fashion brands are currently in the testing phase.
“Our passion for the gifting economy and sustainability has developed into a product designed to address the global resource crisis with kindness. By shifting our collective perspective, we realize that most of what we need has already been created,” GIFTD founder Hannah Kromminga said.
Oct. 24, 2024 – Cafeteria Raises $3M in Seed Round
Cafeteria has raised $3 million in a seed round led by Collab Fund (Lyft, Whoop, Sweetgreen, Kickstarter), Imaginary Ventures (Skims, Glossier, Daily Harvest, FarFetch, and Stripe), Bertelsmann BII, and music manager and investor Guy Oseary. The Los Angeles, CA-based developer of a brand survey app for teens, says that it has “has on-boarded teens across 60 cities in the U.S., who are talking about more than 200 brands on the platform, generating more than 30,000 insights around Brand Alignment, Audience, Purchase History, Market Positioning, Share of Wallet, Influencers and Competitors across lifestyle, fashion, beauty, food, personal finance and automotive.”
Led by CEO Rishi Malhotra, the company says that teens using the app are “talking about everything from what they would change if they were CEO of Starbucks, to which celebrity Nike should work with next (Adam Sandler is just as popular as Taylor Swift, Drake and Sabrina Carpenter), to how they would spend $100 at the mall.”
Oct. 23, 2024 – Sensei Raises €15M in Series A
Sensei has raised €15 million ($16.2 million) in a Series A funding round led by BlueCrow Capital. The Portuguese startup uses computer vision and AI-powered sensors to “automatically update companies’ payment systems with the contents of customers’ carts, and when they are ready to check out, it will display a list of the items, all ready to be paid for.” There are two key problems in the retail industry,” according to Vasco Portugal, CEO and co-founder of Sensei: “The experience for customers sucks. Secondly, it’s very hard to process all of the sales information in real time. Now, it’s really about the automation of stores, like the automation of cars and the automation of factories. I think it’s a natural transition.”
Oct. 16, 2024 – Autone Raises $17M in Series A
Autone has raised $17 million in Series A funding, led by General Catalyst with “strong backing” from YCombinator, Speedinvest, Seedcamp, Motier, Financière Saint James, and 2100 VC, as well as business angels from LVMH, Sephora, and Moncler. The London-based company says it will use the new funds to “accelerate our mission to transform retail through AI-driven innovation, built by humans who know the industry inside and out.” Adil Bouhdadi-led Autone says that it is revolutionizing how companies, including Courreges, Roberto Cavalli, Stussy, and Zadig & Voltaire, “forecast demand, manage inventory, and streamline operations—transforming data into decisions that prevent overstock and reduce waste and significantly alleviate the strain on retail workers.”
Oct. 15, 2024 – Ghost Raises $40M in Series C
Ghost has raised $40 million in Series C funding led by L Catterton with participation from existing investors including USV, Cathay Innovation, Equal Ventures, and Eniac. The Los Angeles-based company provides a B2B marketplace that “connects the world’s leading brands and retailers … allowing them to enter into new channels and geographies by connecting them with a broad range of vetted buyers around the world who are seeking access to both surplus and wholesale inventory.”
“We are highly focused on advancing our mission to be the most trusted inventory solution for the world’s best brands,” said Josh Kaplan, Co-CEO of Ghost. “Ghost has continued to grow and expand our focus to be the true partner of choice for leading brands and retailers looking for efficient inventory management and channel opportunities.”
Oct. 11, 2024 – Wayvee Raises $5M in Pre-Seed Round
Wayvee Analytics has raised $5 million in a Pre-Seed funding round led by Tetrad.vc. A customer satisfaction analytics innovator for brick-and-mortar retailers, New York-based Wayvee says that “by uniting radio frequency (RF) waves with proprietary artificial intelligence (AI) algorithms, [its] emotion AI technology anonymously analyzes emotional responses based on physiological signals in real time, evaluating Customer Satisfaction Score (C-SAT) and key performance metrics for retailers.”
“Emotion AI is paving the way for better experiences everywhere. Technology like Wayvee is designed to transform any offline industry where customer experience is key to success, and we’re starting with the largest one: retail,” said Alex Ovcharov, CEO and founder, Wayvee Analytics. “I recognized the growing demand for insights into offline customer experiences, despite a gap in the market when it came to service offerings. My background in customer behavior analytics, combined with experience in founding companies focused on emotion analysis, culminated in Wayvee’s breakthrough technology. Wayvee is changing how stores interact with customers, providing live feedback from 100% of shoppers in real time.”
Oct. 11, 2024 – 4Partners Raises $3.6M in New Funds
4Partners has raised $3.6 million in a funding round. The backers have not been disclosed. Providing a “comprehensive platform and logistics to help companies to quickly launch fully operational online stores,” 4 Partners will use the new funds to enter the UAE market and support its regional growth and expansion plans. The Dubai-based drop-shipping service says that its platform “addresses key challenges faced by e-commerce entrepreneurs, providing access to millions of in-demand products without upfront purchasing in bulk, automated logistics requiring no partner involvement, and a cloud-based IT infrastructure that eliminates the need for coding or maintenance. This e-commerce model, where goods are shipped directly from suppliers to customers, allows sellers to control their profit margins independently, enabling them to focus on sales and marketing strategies.”
This is a short (and incomplete) excerpt from a data set that is published exclusively for TFL Pro+ subscribers. For access to our up-to-date retail tech investment and M&A tracker, inquire today about how to sign up for a Professional subscription.
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