Constructor, a leading AI-powered product discovery and search platform for enterprise e-commerce companies, has successfully closed a $25 million Series B funding round. This latest investment brings the company's valuation to an impressive $550 million, nearly tripling its value since its 2021 Series A round. The funding, led by Sapphire Ventures with participation from existing investor Silversmith Capital Partners, brings Constructor's total funds raised to date to more than $85 million.
The San Francisco-based company, founded in 2015 by Eli Finkelshteyn and Dan McCormick, has been making waves in the e-commerce sector with its innovative approach to product discovery. Constructor's cloud-based solutions utilize natural language processing, machine learning-enhanced results ranking, and collaborative personalization to deliver powerful user experiences across all facets of product discovery.
Constructor's platform is designed to address one of the most pressing challenges in e-commerce: helping shoppers find the products they want quickly and efficiently. By leveraging advanced AI technologies, including transformers (the technology behind ChatGPT), large language models, and AI/ML-driven predictive analytics, Constructor enables e-commerce companies to deliver real-time, personalized customer experiences.
The company's Native Commerce Core technology, a proprietary architecture developed over years, powers eight modules that work together to drive critical business metrics such as revenue, conversion rate, average order value, and profit margin.
Impressive Growth and Customer Success
Constructor's innovative approach has led to significant growth and success. The company has:
- Doubled its revenue for the third consecutive year
- Increased its overall customer base by 50% over the past year
- Maintained an average 98.5% client retention rate over the last three years
- Powered more than 100 billion shopper interactions over the past six months
Constructor's success is not limited to the United States. The company has been experiencing rapid growth in Europe, the Middle East, and Africa (EMEA). Since 2022, Constructor's revenue in EMEA has tripled. To better serve its expanding customer base, the company has increased its customer-facing headcount in the region by 133%.
Notable EMEA clients include Birkenstock, Under Armour (EMEA and North American operations), Monica Vinader, Very, and home24. The company's success extends beyond apparel and home goods to categories such as toys, grocery, DIY, B2B e-commerce, and general retail.
Innovative Product Offerings
Constructor's platform offers a range of solutions designed to enhance the e-commerce experience:
- AI-powered search: Generates customer-first, AI-powered e-commerce search results that increase critical revenue metrics.
- Personalized recommendations: Delivers tailored product suggestions based on user behavior and preferences.
- AI Shopping Assistant (ASA): A recently unveiled tool that blends generative AI with Constructor's personalization technology, enabling buyers to express long-form requests and engage in conversations to receive personalized product recommendations aligned with real-time inventory.
- Attribute Enrichment: Automatically fills gaps and corrects errors in product catalog information, ensuring sellers can surface their full range of inventory to buyers.
Strategic Use of Funding
With this new capital injection, Constructor plans to:
- Accelerate product development and innovation: The company will continue to apply the cutting-edge clickstream-based AI it pioneered to further improve e-commerce product discovery.
- Expand internationally: Constructor aims to continue its rapid international expansion, particularly in the EMEA region.
- Enhance AI capabilities: The funding will support the development and integration of multiple types of AI, including advanced algorithms, machine learning, large language models, transformers, natural language processing, and generative AI.
Constructor's leadership team brings a wealth of experience to the table. CEO and co-founder Eli Finkelshteyn has been at the forefront of the company's innovation, driving its AI-first approach. The company recently appointed Bernd Maehrlein as Vice President of EMEA, bringing extensive experience in building and expanding U.S. startups and scale-ups in the region.
Constructor's successful Series B funding round marks a significant milestone in the evolution of AI-powered product discovery for e-commerce. With its innovative technology, strong customer base, and strategic expansion plans, Constructor is poised to play a pivotal role in shaping the future of online shopping experiences.
