Womenswear brand Ruti raises $6m to grow AI platform
today Oct 31, 2019
California-based womenswear brand Ruti has raised $6 million in a Series A funding round led by Israel-based venture capital firm, Viola Ventures.
According to a press statement, Ruti will use the funds to expand development of its proprietary technology in boutiques for increased personalization; scale online; and open new retail locations.
"This funding will be used to bring the high-touch experience of our in-store experience to our online store, " said Sharon Segev, Ruti chief technology officer. "The traditional e-commerce approach might work for high frequency, low-cost items, but when it comes to unique products and truly personal customer relationships, we knew we had to develop a better approach."
Ruti, founded in 2009 by Israeli-born designer and former tech executive, Ruti Zisser, targets women over 35 years old, and uses its proprietary AI platform to develop personalized recommendations based on each shopper's fashion preferences, likes and dislikes and an understanding of what designs will be most flattering, the brand said.
Using artificial intelligence, a CRM internally built for a retail environment, and opt-in only facial recognition, the brand's AI platform continuously builds customers' profiles, including data points like past purchases and items they've tried on, and gathers customer feedback to use for future designs.
Founded in 2000, Viola Ventures is part of Viola, an Israeli tech-focused investment group with over $3 billion assets under management (AUM). Viola Ventures has backed Israeli companies like e-payment company Payoneer, Facetune parent company Lightricks, web advertising platform Outbrain and digital advertising company ironSource.
Ruti currently operates 10 stores across the United States. Zisser serves as the brand’s chief executive officer and creative director.
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