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Madrid-based martech startup Algori has successfully raised €3.3 million in a seed funding round, signaling a significant boost for the company. Algori specializes in offering fast-moving consumer goods companies highly detailed and specific data, empowering them to make informed decisions and propel their success. The recent investment will be instrumental in further developing Algori's cutting-edge data science technology as it expands its operations in Spain and explores new market opportunities in Western Europe.
The €3.3 million seed funding round was co-led by Shilling Capital in Lisbon and Change Ventures in Tallinn, with participation from Flashpoint VC. Notably, the round also attracted the involvement of angel investors, including Jared Schrieber, former Numerator Board Member and Infoscout CEO, who played a pivotal role in Numerator's $1.5 billion acquisition by Kantar. This impressive lineup of investors demonstrates the confidence in Algori's potential and its ability to disrupt the market.
Consumer goods companies have long recognized the value of granular data in driving their success, as highlighted by McKinsey's research, which indicates that such companies are 3.5 times more likely to utilize detailed data for strategic decision-making. However, the current state of data offerings in the industry is a bit of a letdown, lacking the necessary punch in terms of granularity and speed. This leaves businesses yearning for those juicy, comprehensive insights they crave to stay ahead in the game.
Traditional point-of-sale (POS) data providers tend to overlook major retailers like Lidl and Aldi, despite their significant market share, resulting in an incomplete view of the retail landscape. Moreover, these providers can only offer aggregated sales figures and lack retailer-specific data. On the other hand, consumer panels, which rely on gathering data from a limited number of households, struggle to provide ultra-specific and accurate information on individual products. For example, Kantar's consumer panel claims to cover 12,000 households in Spain, a relatively small sample size compared to the country's population of approximately 47 million.
This is where Algori steps in, revolutionizing the industry with its innovative approach. By leveraging data science, machine learning, and its own consumer app, Algori has amassed a staggering number of approximately 50,000 weekly shoppers. Through this user base, Algori can capture an impressive 1 in 400 grocery receipts in Spain, enabling the company to gather extensive and diverse data. Unlike conventional household panel barcode scanners, Algori's app allows users to submit their receipts and register their complete shopping basket data in just 12 seconds on average. This remarkable speed, combined with Algori's ability to identify individual product-level details without relying on retailer sales systems, sets the company apart.
The collected basket data is not limited to purchase details; it is also enriched with valuable additional information, including shopper demographics, psychographics, past purchase history, and store locations. All of this data is processed in near real-time, empowering Algori's customers to respond swiftly to emerging trends and make agile business decisions. With Algori's technology, companies gain a competitive edge by accessing accurate, granular insights in a fraction of the time it would traditionally take.
In conclusion, Algori's recent €3.3 million seed funding round sets the stage for the company's continued growth and success. With its advanced data science technology and consumer app, Algori is disrupting the market and bridging the gap between consumer goods companies and detailed, actionable data. By providing ultra-granular insights and a near real-time data processing experience, Algori equips businesses with the tools they need to thrive in an increasingly competitive landscape. As Algori expands its operations in Spain and explores new market entries in Western Europe, it solidifies its position as a key player in the martech industry, poised to drive innovation and fuel success for its clients.
