Germany-based VisionAI, an AI research lab, announced on Friday that it has secured €5M in funding and onboarded HV Capital as an additional venture capitalist.
As VisionAI continues to expand and evolve, it plans to use the recent funding to internationalise its business further.
Traditional SMBs often struggle to keep up with the technological advancements compared to larger players in the industry.
VisionAI’s co-founder Melvin Schwarz acknowledges this technological gap to HandelsBlatt, saying “95 per cent of online retailers have been left behind by industry giants. We are here to provide them with the technology to catch up.”
The company aims to level the playing field by offering independent AI technologies to SMBs, enabling them to harness the power of AI in their online operations.
From Recommendy to VisionAI
VisionAI’s journey began with the founding of Recommendy, an online shop that aimed to connect customers with product manufacturers through product photos.
However, when the potential clients expressed greater interest in the underlying technological solutions, VisionAI pivoted to become a technology platform.
Renamed VisionAI at the beginning of the year, the company has 30 employees with 18 dedicated to technical development, collaborating closely with Bielefeld University.
Helping SMBs competing against tech giants
The German company offers a comprehensive toolbox of technologies and AI solutions for online retailers. It include:
- Personalised Shop-the-Look applications: The AI identifies products in the customer’s shopping cart and creates a matching outfit.
- Cross-selling solutions: It enables retailers to offer product recommendations based on customer behaviour.
- AI-powered search: These capabilities stand out as they analyse product images using computer vision technology instead of relying solely on textual descriptions, significantly increasing search accuracy.
Within just 15 months of inception, the company has generated sales of €1.5M and acquired 120 customers globally, including renowned names like New Balance, Zurbrüggen, and Intersport.