Introduction
Consumer packaged goods companies are facing unprecedented challenges in the retail space. With the pandemic exacerbating volatility in shopping behavior and manufacturing, brands need more clarity than ever in making product and inventory assortment decisions across retail stores. This is where Insite AI comes in – a platform that uses AI to provide recommendations on how to price, distribute, and promote products in physical stores.
Launching Out of Stealth with $19 Million Series A Funding
Insite AI has launched out of stealth mode with a significant investment of $19 million in Series A capital from NewRoad Capital and M12, Microsoft’s corporate venture arm. Co-founder Shaveer Mirpuri says that the funding will be put toward customer onboarding, building a team of industry experts to help shape product initiatives, and an expanded feature set.
The Challenge Facing Retailers
Retailers – and by extension, brands – face considerable challenges in managing brick-and-mortar sales revenue growth. According to NPD, more than 80% of U.S. consumers said in May that they’d rein in product spending within the next three to six months. Major retailers like Walmart and Target have lowered their sales and profit guidance in response, reflecting the struggle to move inventory from warehouses.
The Need for a Comprehensive Category Management Solution
Brands have a fundamental business need to achieve stronger influence, collaboration, and execution with their major retailers. They are always seeking out ways to cost-effectively and rapidly produce must-have answers – well ahead of time – on the performance of scenarios in strategic portfolio design, budget planning, assortment, space, pricing, and trade fund strategies.
How Insite AI Addresses This Need
Insite AI aims to help brands make product and inventory assortment decisions across retail stores using data derived from different retailers, sales, supply chains, and market segments. The platform uses AI to provide recommendations on how to price, distribute, and promote products in physical stores, enriching collaboration with their retail channels.
Quotes from Key Investors
"At M12, we make investments in industry disruptors, and we firmly believe that Insite AI is the leading innovator using AI and data to help consumer brands win by enriching collaboration with their retail channels," says David Ulevitch, General Partner at M12. "Insite AI has changed the concept of category and revenue growth management in consumer brands."
Industry Implications
The success of Insite AI has significant implications for the retail industry. With the ability to provide real-time insights and recommendations on product assortment, pricing, and distribution, brands can optimize their sales revenue growth and improve their collaboration with retailers.
Conclusion
Insite AI is revolutionizing the retail space with its innovative use of AI to provide recommendations on how to price, distribute, and promote products in physical stores. With $19 million in Series A funding from NewRoad Capital and M12, the company is poised to make a significant impact in the industry.
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About the Author
Kyle Wiggers is a senior reporter at TechCrunch with a special interest in artificial intelligence. His writing has appeared in VentureBeat and Digital Trends, as well as a range of gadget blogs including Android Police, Android Authority, Droid-Life, and XDA-Developers.
