Israeli retail-tech company Onebeat has completed a Series A funding, raising $5 million.
The round was led by Surround Ventures and AnD Ventures and Renuar group – which has used Onebeat’s services since the company was established – decided to invest as a strategic partner.
Founded by Dr. Yishai Ashlag and Avihai Shnabel, Onbeat helps retailers analyze and understand their customers in real-time using AI and big data tools. The system synchronizes the stores’ management, directs online sales, and manages the product assortment. The system adapts the amount and the variety of products daily for each point and channel of sales.
The challenge identified by Onebeat was the gap between the predictions of retail companies before the season and the actual purchase habits of customers during the season. In retail, orders for merchandise are made a year in advance.
Onebeat’s algorithm breaks the product into basic attributes like color, model, fabric, price and cut and then finds multiple correlations between different attributes and products in various locations. The system can predict the type of products sold in each location in real-time. Eventually, such information will lead to proper inventory allocation in physical stores and the promotion of the right products online.
“We wish for every client to find exactly what they need in the store. The client will purchase the right product for his needs, not just the products on sale. In today’s world, consumerism leads to overproduction and excess inventory, which are left unused. With smarter management, we believe it will be possible to manufacture and showcase fewer products, and still meet customer needs, eventually leading to a reduction in prices for customers,” Shnabel said.
The partnership with Renuar fashion group started at the end of 2018. With Onebeat, Renuar group has benefited from a significant increase in full-price sales, while also decreasing the average inventory in stores. By using Onebeat’s solution, Renuar can adapt the collection in each store to the type of customers shopping at that store.
“As a leading fashion group that manufactures a variety of monthly collections for 180 stores across Israel, we saw the potential of Onebeat, and we have constantly analyzed the output and the algorithm that immediately contributed to our results,” said Serge Derhy, CEO of Renuar group. “We are glad to become more than a customer and turn into a strategic partner by supporting an Israeli startup that assists the retail industry, especially in such challenging times.”
Currently, Onebeat partners with leading global retailers in a variety of industries, including fashion, footwear, jewelry, pharmacies, and beverages. The company’s clients include, among others, WeShoes, American Eagle, Naf Naf, Toys R Us, and the entire retail division of the TATA group.