By clicking submit, you agree to share your email address with the site owner and Mailchimp to receive marketing, updates, and other emails from the site owner. Use the unsubscribe link in those emails to opt out at any time.
By clicking submit, you agree to share your email address with the site owner and Mailchimp to receive marketing, updates, and other emails from the site owner. Use the unsubscribe link in those emails to opt out at any time.
By clicking submit, you agree to share your email address with TFN to receive marketing, updates, and other emails from the site owner. Use the unsubscribe link in the emails to opt out at any time.
San Francisco-based Constructor, an AI-powered product discovery and search platform for enterprise ecommerce companies, has closed a $25 million Series B round. Sapphire Ventures (invested in Alation and FloQast) led the round with participation from existing investor Silversmith Capital Partners.
This round brings the company’s valuation to $550 million and the total funding raised by the company accounts for $85 million.
With this new capital, Constructor will continue accelerating product development and innovation, applying the clickstream-based AI it pioneered to improve ecommerce product discovery further. The company will also continue its rapid international expansion.
“In today’s competitive e-commerce environment, having a powerful AI search solution that can best capture shopper intent is crucial to driving topline revenues – yet until now, existing tech has remained rudimentary,” said Rajeev Dham, Partner at Sapphire Ventures, who will be joining as a Board Director. “With more than a decade of experience in the field, Eli and the team at Constructor have developed a state-of-the-art, AI e-commerce search engine that has delivered best-in-class ROI for many household enterprise brands. We are incredibly excited to partner with the team as they set a new standard in powering a hyper-personalised shopper experience.”
“AI-first companies like Constructor are leading a shift in software away from simply offering workflow management, towards delivering business results,” said Silversmith General Partner, Sri Rao. “We are encouraged by the company’s ability to maintain its dedication to innovation and customer success while navigating rapid growth since our initial investment, and are excited to both expand our commitment as well as welcome Sapphire Ventures as Constructor enters the next phase of growth.”
Improving product discovery is one of the most effective ways to have a meaningful, positive impact on digital metrics, with an attributable return and relatively low investment (in terms of cost for tech and time to value). Constructors’ technology and vision play key roles in this.
Founded in 2015 by Eli Finkelshteyn and Dan McCormick, it is touted to be the only product discovery and search platform tailor-made for enterprise e-commerce where conversions matter. Its cloud-based solutions use natural language processing, machine learning-enhanced results ranking, and collaborative personalisation to deliver powerful user experiences across all facets of product discovery.
Constructor continues its relentless pace of product innovation, helping customers apply multiple types of AI, including advanced algorithms, machine learning, large language models, transformers, natural language processing, generative AI, and more, to improve product discovery while optimising for e-commerce metrics that matter.
While many retailers are tightening their belts under current economic conditions, there has been strong and escalating demand for Constructor’s platform, with companies doubling down on their investments to improve the customer experience.
Eli Finkelshteyn, CEO and Co-founder of Constructor said: “We believe putting AI at the core of our system from the beginning has played a large role in the successes we’ve been able to bring our customers — but also believe there’s always room to serve them better, and that’s the main thing we want to use this investment for. Our success will always be a symptom and function of theirs. And through our partnerships with Sapphire Ventures and Silversmith Capital Partners, we’re extremely excited to build out more ecommerce functionality and expand to additional geographies — driving more value for our customers around the world.”
Constructor generates consistent $10M+ lifts for some of the biggest brands in B2C and B2B ecommerce, such as Sephora, Petco, Birkenstock, The Very Group, home24, Bonobos, and Fisheries Supply. As per the company, customers report results, including a 16.5% increase in average order value, a 247% increase in revenue per visit, a 13% increase in search conversions, a 92% increase in recommendations conversions, a $40 million increase in revenue, greater than 20x ROI and more.
“The thing we liked about Constructor was that not only was it real AI, specifically made for our industry, but that their AI is incredibly transparent,” said Tony Gabriele, Vice President of Digital Strategy, Petco. “None of it is black box – so we don’t have to guess what it’s doing or why – and when we have questions, the Constructor team is always happy to talk us through it. We evaluated every vendor on the market, and Constructor was just different. The system is easy to use, the team is motivated and delightful to work with, and most importantly, it paid for itself plus the cost of switching in less than a year after we implemented it.”
The AI-powered product discovery and search platform designed for enterprise e-commerce leverages advanced AI techniques to enhance product discovery, driving significant revenue gains for major brands. With its transparent and effective technology, Constructor delivers exceptional ROI and customer success, making it a standout in the competitive e-commerce landscape.
© 2024 Tech Funding News – All rights reserved.
Digital Marketing & Design by Yellow Falcon