Syrup Tech raises $17.5 million to bring AI to holiday shopping logistics
Bloomberg
Syrup Tech Inc., a startup that makes artificial intelligence tools to help fashion retailers plan and manage their inventory, has raised $17.5 million in a funding round led by Accel.
The company’s software aims to use AI to reduce retail industry waste, a problem likely to be especially severe this holiday season after consumers’ record-breaking Cyber Monday shopping spree.
The startup’s investors include Google
“Retail is still one of the most wasteful industries in the world,” said co-founder and Chief Executive Officer James Theuerkauf. “We’re able to show our customers in a matter of weeks how much better we are than baseline,” he said, to help them avoid issues such as excess inventory or running out of stock.
Syrup’s co-founders started the company in 2020, after watching retailers struggle with quick-shifting inventory needs during the pandemic. During lockdowns, consumers dramatically shifted their shopping habits, which wreaked havoc on retailers’ supply chains.
The startup, based in New York, plans to hire more staff to expand from about 30 employees to 70 people by the end of next year. The funding round brings its total amount raised to about $25 million.
Syrup’s customers include Reformation
Tchakarov said Reformation has been able to increase the percentage of times it has an item available and in stock at a store for a customer to purchase, from 70% of the time to 90% without buying more inventory. “This is where Syrup is quite strong,” he said.
