AI Unicorns 2022: CommerceIQ Leverages AI for Retail Industry Digitization

Analysts estimate e-commerce sales in the US to cross $1 trillion in 2022. Earlier pre-pandemic estimates had predicted the industry to cross this milestone in 2024. B2B e-commerce is also expected to grow 12% this year to $1.77 trillion. Companies like CommerceIQ are making it easier for the retail industry to transform their digital operations to keep pace with this high growth.

CommerceIQ’s Offerings

Founded in 2012 by Guru Hariharan, Palo Alto-based CommerceIQ is an omnichannel management platform that helps large brands by using machine learning and automation to increase e-commerce sales. Prior to setting up CommerceIQ, Guru had set up retail analytics company Boomerang Commerce, which was a Startup Battlefield finalist in 2014.

CommerceIQ was set up with a mission to empower brands to move from traditional analog-based decision-making tools to algorithm-based ones. With the growth of e-commerce, retail has become more and more algorithmic in nature. Actions including inventory planning, cutting POs, pricing, promotions, and search rankings are all managed by algorithms and not by individual vendors or managers. Traditional consumer brands have still not fully migrated to AI-based decision-making. CommerceIQ is helping these brands adopt AI technologies to help drive their digital transformation.

It offers four key platforms for the retail industry: Retail Operations Management which provides automated tools to help eliminate revenue leakage, Digital Shelf Analytics which leverages AI-based insights to help retailers make informed business decisions, Retail Media Management to drive advertising outcomes, and a Supply Chain management offering.

Recently, CommerceIQ announced the expansion of its support from Amazon to all major online retailers including Walmart, Instacart, Kroger, Target, Best Buy, Bed Bath & Beyond, Costco, Sam’s Club, Kohl’s, Wayfair, and Home Depot. These customers now have the ability to use full coverage connecting sales, marketing, and supply chain operations to leverage its E-commerce Channel Optimization (ECO) platform to drive growth across their online portfolio. They will be able to leverage CommerceIQ’s expanded capabilities to track and optimize their digital shield, activate machine learning-based automation, and generate integrated cross-channel reporting from a single portal.

CommerceIQ is not alone in the mission to transform the retail industry. Players like SideCar Interactive, Perpetua, and Wiser Solutions offer similar products. The high-growth industry affords ample space for these players to coexist.

CommerceIQ’s Financials

CommerceIQ does not disclose its financials. It had mentioned that it grew 267% in revenues in 2021 and is now clocking “eight figures” in software revenues. It has raised $195.5 million in four rounds of funding lead by Shasta Ventures, Madrona Venture Group, Insight Partners, SoftBank Vision Fund, and Trinity Ventures. Its most recent round was held in March 2022 where it raised $115 million at a valuation of over $1 billion.

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