Singuli, an AI and machine learning software startup for retail stores, announced it raised $3.7 million to grow its inventory optimization business.
What Is Singuli?
Founded in 2019, Singuli is an American startup company that developed inventory optimization software for retail businesses. The company uses AI and machine learning that analyzes various ecommerce analytics to provide retailers with useful insights pertaining to what inventory to keep in stock or to phase out.
The startup helps retailers make more informed business decisions in relation to inventory. The AI and machine learning platform analyzes ecommerce website attributes such as buyer behavior, website traffic, product descriptions, product performance history, return rates, market trends, and promotional activities. As a result, Singuli helps retailers forecast potential sales for certain products they may sell up to one year in advance.
In addition, the AI and machine learning company features an order automation tool that recommends which product should be restocked, in what quantity, and what the lead time for the product may be. Furthermore, the startup also provides customers with an order estimation resource that projects the cost of product restocks and how much inventory will be left over in excess once a restock has been completed.
Singuli services many different ecommerce and omni-channel retail stores, some of which include clothing, footwear, jewelry, and home goods, among others.
The retail software startup announced it raised $3.7 million in seed funding led by Harlem Capital. This business funding round for the AI and machine learning company also featured investments from new investors High Alpha Capital and AVG Basecamp Fund. Previous investors who participated in the funding round include Interlace Ventures, LAUNCH, and several angel investors. $700,000 of this capital comes from a pre-seed funding round that Singuli did not announce at the time.
Benjamin Kelly, CEO and co-founder of the startup, said in a company statement, “...Retailers face simultaneously a discerning & fickle consumer, and the constraints of a highly complex & interrelated global supply chain. Staying on top of demand & supply forecasts is a massive challenge for retailers and opportunity for us at Singuli.”
With the new funding, the AI and machine learning business plans to increase its investment in R&D, engineering, and data science staff. Moreover, Singuli will focus on improving and expanding upon its go-to-market strategy.
As many retailers explore expanding business operations for ecommerce and brick-and-mortar locations, many companies have turned to some form of management software to assist them in making business operations run easier.
Inventory management can be crucial to the success of a retail company. Shopify stated in a blog post that inventory shortages can be caused due to lack of funding, inventory data errors, inaccurate forecasting, and changing product demand. Singuli, in particular, is attempting to address these issues through its AI and machine learning software by providing important insights to retailers and avoiding potential human error.
The global retail ecommerce software market was valued at roughly $968.3 million in 2020 and is projected to reach about $1.3 billion by 2021 and increase to about $5 billion by 2026— growing at a CAGR of 31.25% from 2020 to 2026.
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.