In February 2021, about a year into the pandemic, Venadar released a “Future of: CPG” report summarizing the most relevant trends happening in CPG and highlighting the most promising startups in key categories. E-commerce, Sustainability, and Optimized Fulfillment were highlighted as critical areas to monitor innovation in a challenging year for CPG.
4 Brands Profiled in E-commerce Raise a Combined $21.4M Funding
4 of our profiled brands raised a combined $21.4M in the 13 months since the report was released. At the time, we reported that the convenience and safety of online ordering was driving more customers to e-commerce. The innate brand familiarity and loyalty in CPG made it easier for customers to buy online. They were looking for a seamless experience between online shopping and the in-store environments they were used to. Auto replenishment and subscription emerged to generate recurring revenue – and the cyclical nature of the way CPG products are used made this a desirable offering for shoppers. The four brands that were funded touched on these concepts and leveraged AI and machine learning technologies to predict demand and preferences to optimize e-commerce:
- Repeat raised $6M in Early Stage VC funding in July 2021. Based in LA, Repeat offers a smart replenishment platform designed to reorder everyday goods. The platform learns the replenishment habits of customers and uses predictive, frictionless tech to offer a personalized reordering experience for consumers to manage, track, and replenish everyday CPG items from a single screen. Battery Ventures led the Early Stage VC funding round, with participation from Harlem Capital Partners and Mucker Capital. Repeat has raised $8.83M to date since being founded in 2017.
- Halla raised $4.51M in Series A1 venture funding in June 2021. Headquartered in Burbank, California, Halla is a human preference engine built for grocers. The platform uses machine learning to combine food, data, and human science, and layers it with insights on operations research and trending events. It allows grocers to predict the personal preferences of their shoppers in real-time and can drive value across every digital touch point, including e-commerce. SOSV, Food Retail Ventures, and other undisclosed investors participated in the A1 venture funding round. Halla has raised $8.65M to date since being founded in 2016.
- Birdie raised $8.51M in seed funding in February 2022. Based in Palo Alto, California, Birdie uses artificial intelligence to help companies understand what consumers want, identify opportunities in the market, prioritize relevant features, and define go-to-market strategies to build more successful products. Their algorithms perform thousands of simultaneous analyses to generate real-time insights to illuminate trends, critical issues, weaknesses, strengths, and opportunities in many areas, including e-commerce. Illuminate Ventures and SoftBank Latin America Fund led the seed round, with participation from Endeavor Catalyst, Astella Investimentos, and The Fusion Project. Birdie has raised $10.02M since its founding in 2018.
- Rosetta raised $2.4M in Series Pre-A venture funding in November 2021. Headquartered in Taiwan and founded in 2016, Rosetta offers a customer retention platform designed to facilitate e-commerce companies in improving conversion and customer loyalty. They use AI to enhance customer conversion and retention by analyzing consumer preferences, predicting inventory, and recommending products for online and offline during shopping flow. This allows e-commerce businesses to increase conversion and order value. roadVision founder Pehong Chen led the seed funding round, with participation from SOSV, Artesian Capital Management, Loyal Venture Advisors, 500 Startups, and Angel to Venture.
Reach out to us to learn the status of the other startups and categories we profiled in the Future of: CPG report, or to receive a full copy of the 2021 report that highlighted accelerator activity, where CPG players and VC/PE funds were investing, and more.
Moving forward, what’s the next innovation trend in CPG and where are the best emerging startups? Contact us today online or at 404-665-5200 to see how we can create a bespoke report to directly address strategic gaps and challenges you face and identify the right partners to help you move into the future with targeted innovation efforts.