Syte Closes $30 Million Series C Financing to Build First-Of-Its-Kind Product Discovery Platform With Visual AI
Funding will propel product enhancements and geographic expansion for the eCommerce startup, enabling brands around the world to grow online revenue via product discovery
Syte, the world’s first product discovery platform, announced $30 million in Series C funding and an additional $10 million in debt. The round, which brings Syte’s total funding to $71 million, was led by Viola Ventures with additional investments from LG Tech Ventures, La Maison, MizMaa Ventures, Kreos Capital, and existing investors Magma, Naver Corporation, Commerce Ventures, Storm Ventures, Axess Ventures, Remagine Media Ventures, and KDC Media Fund.
Since the beginning of 2020, Syte has grown 22% quarter-over-quarter alongside a 38% expansion of its customer base. Compounding its steady year-over-year growth since its founding in 2015, the onset of COVID-19 and the corresponding surge in eCommerce traffic has kindled sweeping newfound interest in Syte, as brands and retailers around the world rapidly shift to prioritize eCommerce innovation.
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“In the new age of eCommerce, the brands and retailers that create truly individualized and memorable customer experiences will thrive, and our mission is to help them do so,” said Syte CEO and Co-founder, Ofer Fryman. “Our focus for 2021 and beyond will be to develop and acquire solutions that create product discovery experiences spanning the full range of our senses — visual, text, voice, and more — with an end-to-end platform that leverages visual AI and next-generation personalization across the board. This investment gives us the resources to execute this vision.”
As many consumers experiment with online shopping for the first time and others branch out to new brands, eCommerce discovery has become paramount for customer acquisition and retention in the new normal. To harness this potential opportunity for brands and retailers, Syte will use this round of funding to expand its geographic reach and to support the growth of its product offering. With much of their early customer base in Europe, the Middle East, and Africa, Syte will focus on expansion in the United States and Asia-Pacific.
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Ronen Nir, General Partner at Viola Ventures, explained that product discovery has long been a challenge of even the biggest brands and retailers, and that problem is exacerbated online where shoppers can’t see and touch products in the same way.
“Syte built a platform that marries inspiration and innovation in such a way that it creates an enjoyable, personal, and easy-to-navigate experience for shoppers while solving the problem of product exposure and discoverability for brands — something that has only become increasingly urgent in our new reality,” Nir said. “Syte’s growth is a testament to their second-to-none technology, their forward-thinking team, and their laser-sharp focus on customer experience. I’m already looking forward to the impact their continued innovation will have on the eCommerce industry.”
Known for their partnerships with leading brands across the jewelry, apparel, and home decor verticals, including Signet Jewelers, Farfetch, Castorama, and Fashion Nova, Syte’s platform, which includes camera search, personalization and recommendation engines, and eCommerce search and merchandising solutions, has been proven to increase conversion by 177% on average.
“We are thrilled to invest in Syte as it creates the ‘Discovery Cloud’ category. Its differentiated AI technology allows e-retailers to create intuitive and personalized shopping experiences by leveraging its market-leading product discovery platform,” noted Anshul Agarwal, Managing Director of LG Technology Ventures. “The Syte team’s strong execution has resulted in rapid growth and widespread interest from across the ecosystem. LG Technology Ventures is excited to partner with Syte and help the company grow to become an integral part of the future of retail, as eCommerce and digitalization trends accelerate quickly.”
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