Navigating complex product categories online has long been a challenge for shoppers, often leading to frustration and indecision. Prague-based AI startup Outfindo seeks to address this issue by offering intelligent guidance tools for e-commerce platforms. Recently, the company secured €1.2 million in late-seed funding to grow its operations and expand its reach into new markets. This investment highlights the increasing demand for advanced AI solutions in the e-commerce sector, driven by consumers’ need for streamlined and informed shopping experiences.
How does Outfindo intend to simplify online shopping?
Outfindo’s core offering, the Product Guide, integrates directly into e-commerce websites, helping users navigate complex product selections through intuitive questions. The platform employs two AI models: Outfindo Beacon, which analyzes customer behavior to provide tailored recommendations, and Outfindo Diver, which processes and refines product data to ensure accuracy. These tools aim to mimic expert in-store assistance in the digital realm, addressing a critical gap in online retail.
What does the funding mean for Outfindo’s future?
The €1.2 million funding round, led by Eleven Ventures with participation from Dronamics, Payhawk, and others, will support Outfindo’s plans to expand its operations. The company aims to scale its platform to cover additional product categories such as air conditioners and gaming consoles while also enhancing its AI capabilities. New features in the pipeline include advanced analytics tools and automated dashboards for retailers, aimed at providing actionable insights and improving customer engagement.
Outfindo’s journey has been marked by rapid growth, with the platform expanding from two product categories in two countries to 26 categories across 10 countries over the past year. In 2023, Outfindo secured funding led by Presto Ventures, which laid the groundwork for its recent achievements. Unlike earlier periods of slower expansion, the company now leverages AI-driven tools to achieve higher conversion rates and reduce product returns, reflecting a clear shift in its operational strategy.
The company’s roots lie in the personal experiences of its founder, Jan Mateju, a former professional cyclist, who struggled to guide friends and family in selecting the right products online. This inspired Outfindo’s focus on bridging the gap in product expertise between traditional stores and e-commerce platforms. According to company data, 81% of online shoppers struggle with product selection, and 76% seek expert advice, underscoring the relevance of its solutions.
Current plans also include developing a self-service solution for smaller e-retailers, allowing them to implement Outfindo’s tools with minimal effort. The company’s AI-driven framework, which delivers interaction rates as high as 72% on dedicated guide pages, has proven effective in boosting merchant sales and reducing returns. As it scales further, Outfindo aims to refine its data automation processes, particularly for platforms like Google (NASDAQ:GOOGL) Shopping, which require detailed product information.
According to CEO Jan Mateju, “This investment will allow us to enter new markets faster and advance our technology, especially in the area of product data automation and enrichment. This is crucial for e-retailers who rely on platforms like Google Shopping, where optimizing the completeness and complexity of product data is essential.”
Outfindo’s efforts mirror a broader trend in e-commerce where AI technologies are increasingly utilized to enhance user experiences. While earlier solutions were often limited to basic recommendation systems, platforms like Outfindo are pushing boundaries by integrating more sophisticated tools that address complex customer needs. This shift signals a growing recognition of the importance of customer-centric approaches in online shopping.
By combining advanced AI technologies with customer insights, Outfindo has carved a niche in the e-commerce sector. As competition intensifies, its ability to offer tailored solutions to both large and small retailers will play a key role in its future success. For businesses, adopting such AI-driven tools offers a way to stay competitive, improve sales, and provide a more personalized shopping experience to customers. For consumers, this means fewer frustrations and more confidence in their purchasing decisions.
