Insite AI raises $19M to help consumer brands define their in-store strategies
Insite AI, a platform for consumer packaged goods companies that uses AI to provide recommendations on how to price, distribute and promote their products across physical stores, was launched today quietly with $19 million in Series A capital from NewRoad Capital and M12, the corporate venture arm of Microsoft. Co-founder Shaveer Mirpuri says the funding will go toward customer onboarding, building a team of industry experts to help shape product initiatives, and an expanded feature set.
Mirpuri and Jonathan Reid co-launched Insite with the belief that there was a large potential market for physical sales revenue growth management software. It's true that retailers - and by extension, brands - face considerable challenges in this area, especially as the economy takes a precipitous turn. According to NPD, more than 80% of American consumers said in May that they would limit their spending on products over the next three to six months. Major retailers like Walmart and Target cut their sales and profit forecasts in response, reflecting difficulty moving inventory from warehouses.
“Brands have a fundamental business need to build influence, collaboration and execution with their key retailers. They are always looking for ways to quickly and cost-effectively produce much-needed answers – well in advance – on performance of strategic portfolio design scenarios, budget planning, assortment, space, pricing and trade fund strategies," Mirpuri said. "The pandemic has exacerbated the need for greater clarity in the decision making due to constant changes and volatility in buying behavior and manufacturing."
That's where Insite comes in. The platform, hosted on a client's cloud environment, aims to help brands make product assortment and inventory decisions and retail store pricing, using data from different retailers, sales, supply chains and market segments. Insite synthesizes data to create simulations to optimize assortments and trade promotion plans, trying to predict the performance of each product, store and day of the week and providing explanations of the factors affecting demand and the price elasticity.
Image credits: Insite AI
Several startups approach the same problem from different angles, such as Hivery, which sells software that optimizes product placement on store shelves. Cosmose's software analyzes foot traffic to help retailers create marketing campaigns. There's also Lucky, which provides real-time distribution and inventory discovery information.
But Mirpuri sees consulting firms as Insite's biggest competitor; a competitor that he feels is insufficient in several respects.
"Consulting firms advising consumer brands tend to carry out one-off, slow and expensive assignments. Exis...
Insite AI, a platform for consumer packaged goods companies that uses AI to provide recommendations on how to price, distribute and promote their products across physical stores, was launched today quietly with $19 million in Series A capital from NewRoad Capital and M12, the corporate venture arm of Microsoft. Co-founder Shaveer Mirpuri says the funding will go toward customer onboarding, building a team of industry experts to help shape product initiatives, and an expanded feature set.
Mirpuri and Jonathan Reid co-launched Insite with the belief that there was a large potential market for physical sales revenue growth management software. It's true that retailers - and by extension, brands - face considerable challenges in this area, especially as the economy takes a precipitous turn. According to NPD, more than 80% of American consumers said in May that they would limit their spending on products over the next three to six months. Major retailers like Walmart and Target cut their sales and profit forecasts in response, reflecting difficulty moving inventory from warehouses.
“Brands have a fundamental business need to build influence, collaboration and execution with their key retailers. They are always looking for ways to quickly and cost-effectively produce much-needed answers – well in advance – on performance of strategic portfolio design scenarios, budget planning, assortment, space, pricing and trade fund strategies," Mirpuri said. "The pandemic has exacerbated the need for greater clarity in the decision making due to constant changes and volatility in buying behavior and manufacturing."
That's where Insite comes in. The platform, hosted on a client's cloud environment, aims to help brands make product assortment and inventory decisions and retail store pricing, using data from different retailers, sales, supply chains and market segments. Insite synthesizes data to create simulations to optimize assortments and trade promotion plans, trying to predict the performance of each product, store and day of the week and providing explanations of the factors affecting demand and the price elasticity.
Image credits: Insite AI
Several startups approach the same problem from different angles, such as Hivery, which sells software that optimizes product placement on store shelves. Cosmose's software analyzes foot traffic to help retailers create marketing campaigns. There's also Lucky, which provides real-time distribution and inventory discovery information.
But Mirpuri sees consulting firms as Insite's biggest competitor; a competitor that he feels is insufficient in several respects.
"Consulting firms advising consumer brands tend to carry out one-off, slow and expensive assignments. Exis...
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