Vue.ai raises $17M to equip online retailers with AI smarts
Vue.ai, a U.S/India startup that develops an AI platform to help online retailers work more efficiently and sell more, has announced a $17 million Series B round.
The investment is led by Falcon Edge Capital with participation from Japan’s Global Brain and existing backer Sequoia Capital India. Parent company Mad Street Den was founded in 2014 and it raised $1.5 million a year later, Sequoia then bought into the business via an undisclosed deal in 2016. Vue.ai is described as an “AI brand” from Mad Street Den and, all combined, the two entities have now raised $27 million from investors.
In an interview with TechCrunch, Vue.ai CEO and co-founder Ashwini Asokan — who started Mad Street Den with her husband Anand Chandrasekaran — explained that Vue.ai is a “retail vertical” of Mad Street Den that launched in 2016, she said that the company may add “another vertical in a year or two.”
Vue.ai is solely focused on working with online retailers, predominantly in the fashion space, and it does so in a number of ways. That includes expected areas such as automating product tagging and personalized recommendations (based on that tag library), as well as visual search using photos as input and tailored product discovery.
Areas that Vue.ai also plays in which surprised me, at least, include generating human models who wear clothing items — thus saving considerable time, money and effort on photo shoots — and an AI stylist that doesn’t take human form but does learn a user’s style and help them outfit themselves accordingly.
Tagging and visuals may appear boring, but these are hugely important areas for retailers who have huge amounts of SKUs, items for sale, on their site. Making sure the right person finds the right item is critical to making a sale, and Vue.ai’s goal is to automate as much of that heavy-lifting as possible. Even tagging is essential because it needs to be done consistently if it is to work properly.
More than just working correctly, Vue.ai aims to help online retailers, who often run a tight ship in terms of profitability, save money and get new product online and in front of consumer eyeballs quickly.
“These are solutions that optimize the bottom line for retail companies,” said Asokan, who spent over a decade working in the U.S before returning home in India in 2015. “We are digitizing products 10X faster than you did before… you cannot afford to lose productivity and efficiency, online retail is not somewhere you can lose money.”
“We want to be that data brain mapping digital products,” she added.
Vue.ai is now pushing into new areas, which include advertising and development of videos and marketing content.
“The future of retail is entertainment and the experience economy is the small start of that era,” Asokan said, reflecting on the trend of social media buying through platforms like Instagram and the rise of live-streaming e-commerce in China.
“The electricity that powers all of these complicated retail interactions is content; we need to understand content and every customer style profile and merchandise,” she added.
Some of Vue.ai’s public customers include Macy’s and Diesel in the U.S, Latin American e-commerce firm Mercadolibre and Indian conglomerate Tata .
Vue.ai is headquartered in Redwood City with an office in Chennai, India. Asokan said it is planning to expand that presence with new locations in Seattle, for tech hires, and Japan and Spain to help provide closer support for customers. The company doesn’t disclose raw numbers, but it said that annual revenue grew by four hundred percent in 2018, which was its third year since incorporation.