SpangleAI has revealed $6 million in seed funding from Madrona Ventures and Streamlined Ventures “to launch an AI-powered commerce platform for retailers to maximize revenue from paid traffic,” the company said, adding that it hopes to set “a new standard for AI-driven commerce, seamlessly integrating with retailers’ existing systems to scale and optimize the post-click consumer experience.” The platform is being powered by Agentic AI and ProductGPT.
SpangleAI said its solution, Spangle, aims to address key challenges in e-commerce.
“One of the most expensive and overlooked challenges in e-commerce is the disconnect between hyper-targeted marketing and one-size-fits-all shopping experiences,” the company said in a statement. “The cost of each site visit has climbed 9 percent over the past year, as brands and retailers grow more dependent on paid traffic to drive growth. Meanwhile, 76 percent of consumers express frustration when personalized interaction expectations are unmet.”
The company said despite advances in AI, “most digital shopping experiences remain fragmented and fail to holistically learn from consumer behavior, missing the opportunity to leverage AI and reinforcement learning.”
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SpangleAI claimed Spangle delivers self-optimizing shopping journeys “that are contextually relevant and adaptive based on real-time consumer engagement. Spangle’s proprietary ProductGPT powers this experience with a large product model that decodes context, consumer interactions and merchant data.” And since it is paired with “360-degree product intelligence,” Spangle’s AI agents “autonomously tackle complex challenges at scale, delivering experiences that enhance revenue, boost conversion rates and optimize efficiency to maximize the value of every visit.”
As a result, Spangle has delivered strong results in controlled A/B tests with multiple clients, the company said. This includes a 51 percent increase in conversion rates, a 46 percent increase in engagement, an 18 percent rise in average order value and a two-times improvement in return on ad spend.
When asked about the impetus behind creating the platform, Maju Kuruvilla, chief executive officer and founder of SpangleAI, said, “Digital commerce needs a fresh approach. That’s why we developed an AI platform tailored to the unique needs of brands and retailers — unlocking native AI shopping experiences that adapt to consumer engagement in real-time, deliver one-to-one interactions and drive better results while streamlining operational inefficiencies.”
Kuruvilla, who was the former CEO of Bolt and vice president and general manager of worldwide logistics at Amazon Prime, said personalization across retail “has failed to live up to its promise due to its reliance on sparse, expensive and backward-looking customer data. No single merchant has enough customer data to make accurate predictions, and customers want more than repeat purchases.”
The CEO said shoppers are inspired by social media platforms and are seeking “relevance and variety, and we’re delivering on these changing expectations with a next-generation native AI e-commerce platform.”
Scott Jacobson, managing director at Madrona Ventures, said AI has the potential “to optimize relationships between consumers and brands, but many brands still face a gap between growing expectations and reality. To win, they must deliver relevant, scalable experiences that actually drive higher satisfaction and conversion.”
Jacobson said Spangle’s agentic AI “has demonstrated tangible impact for brands by improving engagement and conversion, particularly in traditionally low-performing paid channels. We’re excited to support Spangle as they redefine how retailers connect with customers at the application layer.”
Gary Haas, vice president of e-commerce at WHP Global, which owns a portfolio of global consumer brands, including Anne Klein, praised the technology. “At WHP Global, we are committed to leveraging AI-driven innovations that enhance our brands and create meaningful customer experiences. By implementing Spangle’s technology for anneklein.com, we’ve unlocked new efficiencies and identified multiple areas where their core technology and ProductGPT can add significant value to our customers’ experience.”
Ullas Naik, founder and general partner at Streamlined Ventures, said Spangle zeros in on solving consumer pain points in e-commerce. “Consumer expectations are evolving rapidly, fueled by generative AI’s adoption across the consumer landscape,” Naik said. “Shoppers now expect technology to understand their intent, anticipate their next question and deliver tailored results in real-time and e-commerce needs to meet those expectations to remain competitive. Spangle gets to the heart of this issue. Spangle offers a game-changing platform that empowers retailers to compete by improving consumer interactions and providing a scalable, sustainable path forward.”
Deborah Weinswig, CEO and founder of Coresight Research, said in her work with global retailers and through leading Coresight’s Retail AI Council, “I consistently hear that executives are struggling to keep up with evolving consumer expectations while also managing rising acquisition costs. Unlocking the full potential of AI in retail requires deep industry expertise combined with world-class AI talent. With their deep domain expertise and track record of delivering value, Spangle is a company the industry should be watching closely.”
