Israeli retailers SaaS company Donde Search has announced it has raised $6.5 million in Series A funding led by Matrix Partners, with participation from previous investors including senior leaders from AliExpress, Google, Waze and Mobileye. The funding will be used to scale the business and develop partnerships with major retailers in the US. Donde has raised $10 million to date and previous investors include UpWest, Afterdox and Golden Seeds.
With offices in Tel Aviv and New York, Donde Search transforms the online shopping experience to help e-commerce sites imitate the way their customers think about products. The company uses Computer Vision and Natural Language Processing to turn product images into robust structured data.
Donde Search was founded by CEO Liat Zakay to combat her “shopstration” - the common frustration one feels when shopping and wasting hours of one’s time trying to find an item that fits our taste and needs perfectly.
She said, “Visual discovery is changing the way consumers find products and interact with retailers. Shopping is inherently a visual experience. E-commerce continues to be the dominant channel for retail and so it’s crucial that merchants think like their customers, specifically by enabling visual search navigation that is highly personalized and relevant to their tastes.”
This latest funding follows Donde's partnership with Forever 21, which allows shoppers to search for items by simply clicking on product attributes they were searching for, like the length and fit of a skirt to the neckline and color of a shirt. The integration was originally only available on the Forever 21 mobile app, but just one month after launch, Forever 21 saw an increase in conversions and 20% increase in average purchase value, leading to a full expansion to web as well. Today, Donde is working on pilot programs with several other major retailers in the US and Europe.
“The traction and market validation that the Donde team has been able to secure to date has been remarkable,” said Hardi Meybaum, Matrix Partners. “The combination of sophisticated AI, computer vision and the overwhelmingly positive feedback they are getting from customers made us eager to invest, and we’re excited about what is next.”
Published by Globes, Israel business news - en.globes.co.il - on February 14, 2019
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