Constructor, a product discovery and search platform for enterprise ecommerce companies, has announced its European expansion plans in tandem with the close of its $25M Series B round which brings the company’s valuation to $550M.
This brings total funds raised to date to over $85 million. Sapphire Ventures led the round with participation from existing investor Silversmith Capital Partners. With this new capital, Constructor will continue to apply clickstream-based AI created to further improve ecommerce product discovery — and continue its rapid international expansion.
Even as many retailers face economic headwinds, there has been strong and escalating demand for Constructor’s platform, with companies doubling down on their investments to improve the customer experience. Customers report results including: 16.5% increase in average order value, 247% increase in revenue per visit, 13% increase in search conversions, 92% increase in recommendations conversions and a $40 million increase in revenue. Client brands include Sephora, Petco, Birkenstock, The Very Group, home24, Grove Collaborative and Fisheries Supply.
“In today’s competitive ecommerce environment, having a powerful AI search solution that can best capture shopper intent is crucial to driving topline revenues — yet until now, existing tech has remained rudimentary,” said Rajeev Dham, Partner at Sapphire Ventures, who will be joining as a Board Director.
“With more than a decade of experience in the field, Eli and the team at Constructor have developed a state-of-the-art, AI ecommerce search engine that has delivered best-in-class ROI for many household enterprise brands. We are incredibly excited to partner with the team as they set a new standard in powering a hyper-personalized shopper experience.”
Eli Finkelshteyn, CEO and co-founder, said: “We’re very proud of this fundraise, but it’s important for us to remember that it’s only a symptom of doing good work for our customers. If we don’t use this to do better for them, then we’re missing the point. We started Constructor off with what, at the time, seemed like a crazy idea to most of our industry: that learning shoppers’ preferences via AI can give them a far better search and product discovery experience than simply matching on the keywords they type.
“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. Our success will always be a symptom and function of theirs. And through our partnerships with Sapphire Ventures and Silversmith Capital Partners, we’re extremely excited to build out more ecommerce functionality and expand to additional geographies — driving more value for our customers around the world.”