Description
Problem
Currently there are more than a million e-commerce and OTT platforms in the market. These e-commerce and OTT platforms lose customers due to lack of real time personalised recommendations and contextual search. Companies like Amazon and Netflix have developed this technology in house and deployed it on their platform which has resulted in 10-15% more revenue and 35% lesser customer churn for them. But other platforms don’t have access to this technology.
Solution
Argoid solves this issue with their patent-pending recommendation engine and smart search engine. They target businesses with more than 1,00,000 monthly active users on their platform, and have more than 100 products. They provide their consumers dynamic personalisation based on their searches across multiple platforms. Their AI model is trained using millions of images; if a user searches for a particular product on an e-commerce website, and even if that particular tag is not given in the product description, the AI can recognise and understand the user’s requirement.
Market Opportunity
Recommendation Engines Market Size is projected to reach USD 54 Billion by 2030, growing at a CAGR of 37%.
Following are a few highlights of Argoid:
- Argoid operates on a SaaS model, charging their clients on a monthly basis.
- They have prominent customers in India and overseas, such as Rare Rabbit, Decathalon, FritoLay, Jaypore, etc.
- Argoid is backed by Yournest, a premier deep tech VC.
- They closed FY21-22 at USD 40k and have achieved Current Revenues (till Dec 22) of USD 254k with 12 customers so far.
About the Founders
Gokul Muralidharan– CEO – Ex-Flipkart, Goldman Sachs, Huawei. He has pioneered recommendation engine and search platform development in the industry.
Chackra Esakkimuthu– CTO Ex-Flipkart, Netapp, Huawei. He has scaled revenue for Flipkart (Walmart Subsidiary) through the data platform.
Details of the round
The company is looking to raise INR 8Cr (commitments of INR 5.4Cr received already) with a Pre-Money Valuation of INR 97.2Cr.
The company is likely to get oversubscribed, as they have already closed one tranche of the fund raise (INR 3.76 raised from Yournest). They already have a firm commitment of INR 1.6Cr from Turbo Start in this tranche too.
The investment opportunity is open to Lead Angels Fund members only with a ticket of INR 5 Lakhs*. In case commitments exceed the allocated amount, allotment will be on a “First Come, First Serve” basis.
