Unbxd, a cloud-based product discovery platform for e-commerce, has raised $12.5 million in a series C funding round, which was led by Eight Roads Ventures, the proprietary investment arm of Fidelity International Ltd.
Existing investors IDG Ventures, Inventus Capital Partners and Nirvana Ventures also participated in the round. Infosys co-founder Kris Gopalakrishnan also invested in the round.
The company will use the funds to strengthen its product offering and accelerate its go-to-market play by expanding its sales and marketing team.
“Traditional rules-based ecommerce technology is hard for retailers to manage while also delivering a poor experience for their shoppers,” said Pavan Sondur, co-founder & CEO of Unbxd. “With a better AI solution in place, retailers are more competitive because shoppers can more easily buy what they seek.”
Founded by Sondur and Prashant Kumar, Unbxd’s artificial intelligence (AI) powered plug-and-play solution enables online retailers to capture the 15-40% in revenue that is lost due to a poor product discovery experience. The platform delivers a customized experience to consumers resulting in better conversions. The company claims to power over 1.5 billion shopper interactions a month.
In 2016, Unbxd had raised its series B funding led by IDG Ventures, Inventus Capital and Indian Angel Network (IAN).
“Unbxd has a great product/market fit, and now is the right time to accelerate its go-to-market strategy,” said Raj Dugar, managing partner, Eight Roads Ventures. “E-commerce product discovery tools represent a multi-billion-dollar opportunity globally and Unbxd is well positioned to emerge as a leader in the space.”
The funds raised will be invested in enhancing Unbxd’s proprietary Intelligence Engine, which captures and processes more than 50 shopper data signals to power personalized search, navigation and product recommendations on e-commerce sites. Unbxd will also open new offices to be closer to its customers in Chicago and New York.
Unbxd revenue grew 400% in the past year, according to a statement by the company. It has also strengthened its customer portfolio by adding leading retailers, including Ashley HomeStore, Express and FreshDirect to its list of clients.
A large majority of the startup’s existing revenue comes from the US market followed by the Indian market, where it counts Lenskart, Pepperfry and Titan among customers.