Birdseye Raises $3 Million to Back AI-Powered eCommerce Efforts

eCommerce-focused AI firm Birdseye has raised $3 million to help retailers launch “hyper-personalized” campaigns.

The Toronto-based company announced the seed funding Wednesday (Nov. 22), saying it would use the financing to bolster its hiring efforts.

“Our technology isn’t about generic promotions or marketing campaigns; it’s about enabling retailers to serve each customer’s unique preferences, delivering tailor-made offers that resonate positively,” Matt Bogoroch, Birdseye’s CEO, said in a news release.

“It’s a win-win, with shoppers valuing personalized deals and retailers benefiting from increased loyalty and engagement,” he added. 

According to the release, Birdseye’s product is powered by an artificial intelligence (AI) algorithm trained on large amounts of retail transaction data to match consumers they are most likely to be interested in buying.

The AI also lets retailers match excess inventory with their customers who would be most likely to purchase it, saving them from having to offer generic discounts or embark on mass email campaigns. The company helps brands and retailers understand “granular consumer insights” and then automates email and SMS offers. 

“In addition to improved efficiencies with advertising spend, Birdseye is also solving the problem of customer retention, which is plaguing retailers today,” the release said. “Birdseye’s technology helps retailers detect when they are about to lose a customer and enables the retailer to proactively respond with personalized pricing and product offers to win that customer back.”

The funding comes as a number of retailers are employing AI to improve their standing in the eCommerce space.

For example, eBay said earlier this month that its AI investments have enhanced how customers perceive its shipping capabilities.   

“In Q4 we deployed a new machine learning model for estimated delivery date from the U.S. and select international markets, enabling us to make more accurate delivery productions to buyers,” Jamie Iannone, CEO of eBay, said during an earnings call.

This has let the company provide more precise delivery estimates to buyers, driving a reduction of about 1½ days in the average delivery estimate for all domestic listings. 

Meanwhile, PYMNTS wrote last month that both Amazon and Walmart were using AI to attract third-party sellers. For Amazon, that means a new generative AI solution for Amazon ads to help advertisers create more engaging content.

And Walmart has begun using AI and augmented reality (AR) technologies to enhance the convenience of shopping. 

For all PYMNTS AI and retail coverage, subscribe to the daily AI and Retail Newsletters.