DataMilk, an artificial intelligence (AI) tool which autonomously optimizes ecommerce websites to improve the customer experience and drive increased sales, has raised a $1.7m seed round led by Brazilian VC big_bets, European investors RTP Global, and Berlin-based Angel Invest, with additional support from investor Matthew Freud to expand its product offering across the globe as it takes on more employees to drive forward product development.
Using AI, the company provides an accurate measurement of an ecommerce store’s design efficacy while recreating the work of a dozen ‘Google-level’ engineers, data scientists and designers to optimize a store and increase sales. DataMilk’s proprietary AI algorithm finds variations of an ecommerce store’s design, such as button sizes, colours, font, element order, and more to automatically generate thousands of different experiments that are launched across the site. DataMilk then observes the performance of these variations across various core cohorts of users and automatically launches the most engaging UI to generate increased sales.
The company strives to “fix the internet” with AI and despite having been on the market for less than three months, DataMilk’s unique level of automation innovation has already led more than 70 ecommerce clients to sign-up. Meanwhile, the company has processed over 100 million user sessions, and improved conversion rates by approximately 3%, resulting in $5m of additional sales for a single client. On average, customers are experiencing an increase in sales of up to 15% after taking just five minutes to integrate DataMilk. In addition, DataMilk’s service is free until it creates a measurable impact on a customer’s profits, meaning there is no great risk for retailers.
Founded a year ago by ex-Googlers, the DataMilk team possesses more than 50 years of data-driven optimization experience, having generated $3.2b in extra revenue for Google every year. The company works on a fully remote basis with employees based globally.
Peter Szalontay, Founder at DataMilk, said: “DataMilk comes at a time of amazing pace of innovation in AI. We’ve been exposed to decision-making systems for a while – AI analyzing data and deciding best options or flagging weird data to stop a process, but we’re only now starting to see the impact of generative models – which open the path to computer creativity. We decided to combine these systems and structure them around core principles we learned at Google while optimizing search. DataMilk’s AI engine is our answer to the lack of optimization teams (engineers, data scientists and designers) available to the majority of internet companies. As such we’re democratizing a practice that mostly exists only in the largest of silicon valley companies due to a shortage of qualified talent.”
Galina Chifina, Partner at RTP Global, added: “We are huge believers in the next generation of ecommerce services enabled by data science, AI and new edge technology. We feel the dominance of the traditional marketplaces and platforms will be balanced by a lot of independent smaller providers empowered by the universe of new and exciting companies, like Data Milk. The team at DataMilk is brimming with industry experience and a fervent ambition to rethink the way online retailers operate in a world that is becoming more and more dominated by larger technology giants. We are super excited to be onboard!”
Alexandre Mello, Partner at Big Bets said: “DataMilk is helping to build the future of ecommerce by supporting merchants that are experiencing rapid growth rates by delivering real results and not just another optimization tool. Every high-growth merchant wants to sustain this pace, however, continuing to identify optimization opportunities and simultaneously scaling the technology and infrastructure team is a major challenge. Datamilk is rebuilding the future of ecommerce by solving these two issues simultaneously as it boosts conversion rates without interference from the tech team. We are proud to support such a bold and talented team! With the speed at which they are progressing, I am sure that in the near future the entire global ecommerce community will benefit from Datamilk!”