Netail closes $5m seed funding to advance retail-focused AI development

Netail closes $5m seed funding to advance retail-focused AI development

Published: 01-12-2022 10:54:00 | By: Pie Kamau | hits: 4354 | Tags:

Netail, a technology that enables retailers to auto-identify competitors across the internet and track their assortments, availability and optimize prices in real time, announced the closing of $5 million in seed funding.

The round was co-led by Magarac Venture Partners (MVP), which provides early-stage venture capital to dynamic entrepreneurs and successful technology companies throughout the Midwest, and Dr. Andrew Ng's AI Fund. Other investors include HKSTP Ventures.

Consumer behavior has changed dramatically, and the majority of purchase decisions are now made online via search, marketplaces and social media. With retailers struggling to adapt, Netail's AI technology is designed to help them succeed by attracting, converting and retaining customers in these increasingly competitive digital arenas. Real-time data and decision-making are essential for retailers to better understand how products are positioned.

Founded in 2022 as part of Landing AI, Netail will now develop its breakthrough artificial intelligence (AI) technology in Pittsburgh, the home of Carnegie Mellon University and a technology hub, while retaining a presence in Palo Alto. Netail's latest round of funding will be used to enhance current product offerings and expand its team of retail, AI, and software engineers. In addition, Netail will leverage MVP's deep Midwest connections to win customers, recruit talent and attract new partners.

With customers already spanning three continents, Netail will also expand to the APAC region by opening an office in the Hong Kong Science & Technology Park. With AI Fund's deep domain and international expertise, Netail is poised to help retailers win the digital consumer around the world.

Mark Chrystal, CEO, Netail: "As shopping has been transformed, retailers need to recognize that their competitive universe has expanded a thousand-fold and as a result, competitive pricing, features, availability, and convenience are central to a daily battle to win each and every customer. That's what Netail focuses on, helping retailers around the world stand out digitally against the competition."

Netail's funding comes at a time when U.S. retail e-commerce sales are expected to top $7.9 trillion in 2026, according to a forecast from Statista. Last year, retail sales in the United States alone were valued at $6.58 trillion. Today, e-commerce sales account for over 14 percent of all retail sales in the United States and are forecast to rise to nearly 22 percent by 2025.

Andrew Ng, CEO, Landing AI and Chairman, Netail: "Under Mark Chrystal's leadership, Netail has developed a compelling product that is helping retailers adapt to the rapid shifts in consumer behavior we've seen in the past few years. To help win and retain the modern consumer, many of whom now make online and offline purchases using online search and marketplaces, Netail's analytics solution delivers deep customer and market visibility, and provides data to directly help retailers optimize key decisions in assortment, buying, merchandising and pricing."

Jay Katarincic, Partner, Magarac Venture Partners: "Netail is uniquely positioned to tackle today's retail landscape with the team's extensive background in AI and understanding consumer behavior. We are thrilled to partner with Mark and Andrew on this next stage of the company."