Teikametrics, a leading SaaS provider of AI-powered optimization for brands and sellers on Amazon and Walmart, today announced the completion of a $15 million strategic funding round backed by new and existing investors. The announcement follows Teikametrics’ selection as one of Walmart’s first exclusive advertising optimization partners, and the addition of Srinivas Guddanti, a 14-year senior Amazon veteran, as its Chief Product Officer martech news.
Jump Capital led the round and were joined by follow-on investments from Granite Point Capital, MIT Professor of Econometrics, Jerry Hausman, and the former Head of Growth at Facebook and Uber, Ed Baker.
“We’re thrilled to lead this new round of capital in Teikametrics,” said Michael McMahon, founding partner of Jump Capital. “The Company has grown rapidly, and the success of its proprietary AI technology for Amazon is a strong proof point for a broader ecommerce platform opportunity. The partnership with Walmart is a landmark event and we are excited to fund the expansion of the Teikametrics platform across multiple ecommerce channels.”
The investments will allow the Company to execute at a global level during a pivotal moment for the ecommerce sector as a whole. Amazon recently reported its advertising business surpassed $10 billion in revenue in 2019, Walmart debuted its self-serve ad platform, and retailers such as Wayfair continued to aggressively build out its advertising offerings martech.
Specifically, Teikametrics will use the new funding to further advance its AI technology and product development activities, extend its multichannel optimization to new marketplace channels, and expand the Company’s SaaS platform functionality further beyond advertising optimization solutions. As part of these larger initiatives, Teikametrics will hire aggressively across product development, sales and marketing, and expert analyst support roles. This employee expansion will be distributed globally across its headquarters in Boston and newly opened offices in Seattle and Bengaluru, India.
Teikametrics uses its proprietary AI to automate and simplify decision making for over 3,000 emerging brands generating billions of dollars in sales on Amazon and Walmart. Its SaaS platform, Teikametrics Flywheel, saves ecommerce operators time and money, and accelerates growth through continuous optimization of advertising spend, product sales, and improved brand visibility.
“The closed-loop marketplace model that Amazon uses to dominate the ecommerce landscape is the blueprint for other consumer demand channels and the future of retail,” said Alasdair McLean-Foreman, CEO of Teikametrics. “The fact that Walmart and other retailers are moving towards this system provides a unique growth opportunity for emerging brands and an unprecedented opportunity to use our AI technology to optimize performance. Our goal is to take this increasingly complex multi-channel optimization problem and solve it for entrepreneurs with a beautifully simple piece of SaaS software.”
Teikametrics’ approach is already demonstrating its effectiveness across marketplaces, with brands using the Company’s AI-powered optimization achieving remarkable success using Walmart Sponsored Products. Most recently, fan-favorite PC gaming giant Razer generated more than a 10X increase in ad-derived sales at an extremely low Advertising Cost of Sales (ACoS) through a series of Walmart Sponsored Product campaigns during Black Friday and Cyber Monday period.