Advise, an Ireland-based SaaS platform operating under the name RecommenderX, has finalized a funding round of €1.55 million ($1.6 million) to support its artificial intelligence-driven platform targeting fast-moving consumer goods (FMCG) companies. The platform aims to empower manufacturers with tools to optimize pricing strategies and enhance competitive dynamics within the retail sector. The company has also announced plans to hire additional staff and broaden its market presence over the next 12 to 18 months, following a year of significant revenue growth.
How will the funding shape Advise’s expansion?
The company intends to use the secured capital to grow its workforce to 30 employees and extend its market footprint. Advise reported a notable 250% revenue increase in the past year, signaling robust demand for its platform’s capabilities. The AI-powered software allows manufacturers to analyze data, compare product performance across retailers, and adjust promotional strategies accordingly. This approach seeks to counterbalance the long-standing data-driven advantage held by retailers and provide manufacturers with actionable insights.
What challenges do FMCG companies currently face?
According to Advise co-founder and CEO Kevin McCarthy, manufacturers have traditionally been disadvantaged in pricing negotiations due to a lack of access to relevant data. He stated,
“With pressure on retailers to consistently drive down consumer costs—especially now during the ongoing cost-of-living crisis—this can leave manufacturers with no bargaining chips and very low margins.”
McCarthy highlighted the platform’s role in simplifying data analytics to facilitate more equitable competition between retailers and manufacturers.
Reports indicate that the FMCG sector continues to experience steady growth, propelled by digital transformation efforts despite broader challenges such as Brexit, the pandemic, and geopolitical disruptions. Meanwhile, the increased adoption of AI in the consumer packaged goods sector has been a growing trend, with a 2024 survey showing nearly all businesses experimenting with AI technologies in some capacity.
Market experts have noted that while AI adoption is advancing, certain areas, like supply chain digitization, remain underdeveloped. RELEX Solutions co-founder Michael Falck previously commented on these hurdles, specifically in the fresh goods sector where demand forecasting and optimization are critical. He emphasized the need for improvements in balancing supply and demand while minimizing waste.
Advise’s AI-powered platform enters a competitive market where other companies are also leveraging technology to address inefficiencies in the supply chain and improve cost management. However, Advise’s focus on empowering manufacturers with pricing tools stands out as a key differentiator. Similar efforts by other firms often prioritize retailer-specific benefits rather than bridging the gap between manufacturers and retailers.
Advise’s investment signals the growing interest in AI-driven solutions for the FMCG market. Businesses in this space should monitor the company’s progress, as its platform could set new industry benchmarks for pricing optimization and competitive strategy. For manufacturers, adopting data-driven tools may become vital for sustaining margins in increasingly price-sensitive markets.
