Formulate raises a €1,2 million Seed Investment Round led by Industrifonden
Formulate raises a €1,2 million Seed Investment Round led by Industrifonden - to let retailers take control over their promotions
We're happy to announce a €1,2 million seed investment led by Industrifonden. Existing angel investors also participated in the round. The investment will be used to expand across the Nordics and to strengthen the tech team.
For many retailers, promotions are one of the single largest items in the marketing budget. At the same time, most traders still go with the gut feeling as the basis for promotion investment decisions for millions. Therefor, 20-50 procent of all promotions generate no noticeable sales lift. Formulate want to change that, and let retailers take control of their promotions and make them more profitable.
Formulate DecisionCloud is the first easy-to-use analytics platform in the market that gives retailers the facts and forecasts they need to make better promotion decisions. Using technology based on AI, Formulate detects complex patterns in retailers transaction data and let them see which products, discounts, brands and suppliers that grow their business.
Formulates DecisionCloud analyzes standard receipt data from both e-commerce and physical retailers, and takes, for instance, into consideration how purchases for non-discounted goods and categories are influenced by promotions, how season and weather are driving sales, and what deals are the most effective in different parts of the assortment.
"We’re thrilled to start working with Industrifonden. The investment enables us to do more in less time, which is needed as retailers have to pick the right technologies and implement fast to make themselves relevant. Easy-to-use AI that helps retailers make better business decisions is the future, and we believe our service can dominate how retailers optimize promotions," says Andreas Willgert, founder and CEO of Formulate.
Since 2015, Formulate, has mainly focused on growing its presence within retail food. Consisting of a team of eight, the new capital will allow the company to start to expand outside of Sweden, and grow the tech team.
Sara Resvik, Investment Manager at Industrifonden, is looking forward to following the team on their journey to allow more retailers to control the profitability of their promotions.
"Retail is changing fundamentally. Both physical stores and e-commerce need to work more data-driven and customer-friendly to remain relevant. Formulates service gives retailers deep understanding of a large part of their marketing, that previously been too complex to understand. We are truly impressed by the team's drive and product focus. "