Insite AI is an Artificial Intelligence solution hyper-optimising category management and merchandising decisions in the multi-trillion dollar retail goods market.
In the US$36 trillion Retail & Consumer Packaged Goods (CPG) industry, most of the money is made and lost in merchandising, the section of the retailer value chain where retailers make decisions such as what products to sell, which stores receive different types of stock, how to price products, how many products to buy, etc. This problem, for the world’s largest 250 retailers (US$4.5 trillion) and 100 CPGs (US$1.7 trillion) alone, costs US$453b per year through suboptimal decisions.
Existing solutions don’t nearly provide adequate answers. Existing software solutions are either enterprise resource planning (ERP)/workflow systems or point solution merchandising tools with some “AI”. The retail industry has evolved past these systems.
The Insite AI platform has been designed to be scalably deployed into a retailer, with recommendations delivered via APIs which can be configured for use by a retailer’s existing enterprise system or into new systems. Importantly, Insite AI’s core engine can be configured to solve any core merchandising problem outlined above (assortment, allocation, demand planning, inventory management, lifecycle pricing, promotion, etc), allowing retailers to consolidate their merchandising efforts through a central platform, which has the valuable added benefit of allowing cross-pollination of data insights and removing the siloed nature of optimisation efforts, a must in the data-driven world of 2019, particularly when combatting threats from online vendors.
The US$3m will be aggressively deployed into scaling delivery teams (developers, solution architects, project managers) to deliver on the existing pipeline’s revenue (50%); to continue the expansion of Insite AI’s ecosystem and external partnerships to ensure that trophy customers (world top 160 retail & CPG groups; US$10b revenue and above) can be secured pre-Series A for delivery post-Series A (25%); and to aggressively invest in AI/ML R&D to put further distance between Insite AI’s decision engine and ecosystem IP and that of competitors, and to patent core proprietary IP (25%).
Since this opportunity was last presented to Snowball Effect investors in February, Insite AI has rapidly grown contracted revenue from $0 to US$1.4m/NZ$2.4m. The two large contracted customers are Tyson Foods (US$40b revenue) and Reynolds American (US$11b revenue).
Having raised US$1.6m of the US$3m convertible note round in February, the company paused the raise in March due to the global COVID-19 situation. The company is now resuming the capital raise for the balance (US$1.4m).
This US$3m seed round is likely to be the last NZ funding round prior to a large US-based Series A and the company is now seeking renewed expressions of interest from wholesale investors for investments of NZ$50k+.
If you are interested in this opportunity, please register your interest below.
Snowball Effect is a New Zealand-based online investing marketplace, that enables New Zealand companies to offer shares to members of the public. Snowball Effect was founded in 2012 and launched in August 2014, after being one of the first to acquire an equity crowdfunding license from the New Zealand Financial Markets Authority (FMA). Over NZ$70 million has been raised on the platform.
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