Amsterdam-based Pixyle AI, a provider of image recognition software for clothing retailers, has received €1 million in a seed funding round led by South Central Ventures.
Pixyle AI will use the cash to speed up its expansion, improve the product offering to aid fashion e-commerce in providing better search experiences by creating precise and in-depth product attributes, and enter other industries.
Pixyle AI’s founder and CEO, Svetlana Kordumova, states that “understanding clients’ purchase intent is crucial in search. We have our sights set firmly on this, employing neural networks to teach Pixyle’s AI algorithms to perceive and comprehend images just as people would. For these types of dresses to be displayed to customers in the catalog, they need to be tagged with length “short,” occasion “summer,” with a “floral” pattern, and “purple” and “pink” colors, for example, in e-commerce when site visitors are looking for a specific product to buy and type “short summer dress with flower print in purple and pink.”
We’re trying to make online shopping as frictionless as possible and, hopefully, a little more fun and enjoyable by letting people easily find what they are looking for, Svetlana continued, “It starts with building the right taxonomy. Having the right metadata associated with product images helps retailers capture everyday popular search queries and long-tail searches.”
Svetlana Kordumova founded Pixyle AI, which offers picture recognition solutions to fashion shops to increase the effectiveness of catalog management, enhance the online shopping experience, and increase e-commerce sales.
The Dutch startup enhances product data and relevance in search results by locating fashion items in photos, determining the category, and classifying qualities in a way that consumers can utilize. Better product discoverability leads to improved conversion rates as a result.
According to Pixyle AI, tags produced by its technology may be quickly integrated into a retailer’s current e-commerce stack. The business has so far collaborated with merchants around the world, such as Depop (UK), Otrium (Netherlands), and Miinto (Denmark).
According to the company, it has tagged over 250 million photographs, boosting the relevance and accuracy of product attributes with 95% accuracy and, on average, increasing conversions by 10%.
According to Svetlana Kordumova, “Online clothing shopping will continue to grow, even though retail foot traffic has grown since the pandemic. We are especially enthused by the expansion of the rapidly expanding second-hand fashion market, which offers Pixyle AI a substantial first-mover chance to advance the circular economy. We have created algorithms specifically for user-generated photographs that enable the AI to find and identify clothing even in hazy, unprofessional selfies.
Jan Kobler, Managing Partner of South Central Ventures said, “E-commerce has grown significantly in recent years thanks to several developments that have helped make the channel second nature for customers. Product search, or being able to swiftly and easily find what you’re looking for, is essential to engaging online shoppers. However, search has received very little attention and is a requirement both businesses and consumers have.”
Jan Kobler continued, “Pixyle AI is focused on this chance and has already increased revenue for retailers. They have developed a solid tech stack that is ready to scale after being tried and tested in the market. We are eager to collaborate with the founders and support them as they expand their business in the coming years.”
Image Credit: Pixyle AI
