PYMNTS-MonitorEdge-May-2024

Constructor Raises $25 Million for AI-Powered Product Discovery, Search Engine

Constructor, eCommerce, product discovery

Constructor has raised $25 million in a Series B funding round to support the further product development and international expansion of its artificial intelligence (AI)-powered product discovery and search platform for enterprise eCommerce companies.

With the new funding, Constructor will continue innovating its product and helping customers apply multiple types of AI to improve product discovery “while optimizing for eCommerce metrics that matter,” the company said in a Monday (June 17) press release.

“We believe putting AI at the core of our system from the beginning has played a large role in the successes we’ve been able to bring our customers — but also believe there’s always room to serve them better, and that’s the main thing we want to use this investment for,” Eli Finkelshteyn, CEO and co-founder of Constructor, said in the release.

The Constructor platform uses AI to help shoppers discover products they want to buy and helps eCommerce teams deliver personalized experiences in real time, according to the release.

Over the past six months, the platform has powered more than 100 billion customer interactions, the release said. The company has increased its customer base by 50% over the past year and maintained an average client retention rate of 98.5% over the past three years.

In addition, Constructor recently unveiled an AI Shopping Assistant (ASA) that blends generative AI with its personalization technology, per the release.

Constructor’s AI eCommerce search engine “has delivered best-in-class ROI for many household enterprises brands,” Rajeev Dham, partner at Sapphire Ventures, which led the funding round, said in the release.

“We are incredibly excited to partner with the team as they set a new standard in powering a hyper-personalized shopper experience,” Dham said.

Generative AI can generate new attributes and correct existing ones, helping companies meet the challenge of messy data, Finkelshteyn told PYMNTS in an interview posted in July. By seamlessly integrating with upstream systems, AI solutions offer a minimal technical lift.

In addition to doing 90% or 95% of that work, AI can adapt and improve its search filters and results over time by analyzing clickstream data and learning from customer behavior, Finkelshteyn added.

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PYMNTS-MonitorEdge-May-2024