Constructor, a software-focused company that uses AI to develop applications for faster and more personalized ecommerce search, is enjoying a fresh round of funding.
Constructor, which develops AI-powered product discovery and search applications for retailers such as Sephora, Petco, Birkenstock, The Very Group, home24, Grove Collaborative and Fisheries Supply, has raised $25 million from Sapphire Ventures and existing investor Silversmith Capital Partners.
To date, the nine-year-old company has raised more than $85 million in investor funding and will use the latest proceeds for faster product development.
“AI can give them (B2B and B2C ecommerce companies) a far better search and product discovery experience than simply matching on the keywords they type,” says Constructor CEO Eli Finkelshteyn. “Putting AI at the core of our system from the beginning has played a large role in the successes we’ve been able to bring our customers — but also believe there’s always room to serve them better, and that’s the main thing we want to use this investment for.”
Constructor updated several business metrics that it says helped to attract new investor capital.
They include:
- Doubled revenue for each of the last three years, although the company did not break out a sales number.
- Powered more than 100 billion shopper interactions over the past six months.
- Increased headcount by 45% over the past year.
- Increased overall customer base by 50% and added companies such as Under Armour, Petco, Sephora, Birkenstock and Target Australia.
- Maintained an average 98.5% client retention rate over the last three years.
- Unveiled AI Shopping Assistant, a conversational product discovery tool using blending generative AI.
- Expanded internationally — particularly across Europe, the Middle East and Africa (EMEA), where it has tripled revenue since 2022, the company says.
“We don’t plan to spend all of the money from this fundraise — we weren’t fundraising at the time it was offered, and we’ve always tried to build a business not reliant on venture capital,” Finkelshteyn says. “But the money we do spend, we will spend on finding ways to serve our customers better. “
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