Karma, an AI startup based in Tel Aviv, has raised $25 million in Series A funding to bring its AI Assistance To Million Of Online Shoppers.
The funding round, which was co-led by Target Global and Moretech Ventures, brings the total funding raised by the startup to $33.9 million. Existing investors NFX and Altair Capital also participated. Shmuel Chafets, General Partner and Vice-Chairman a Target Global, referred to the firm’s participation in the round by saying:
“COVID-19 accelerated the e-commerce market by 10 years in just six months. Impressively, more than two billion online shoppers purchased $4.2 trillion of goods or services in 2020. In this massive, fast growing market, we believe Karma can become the market leader in automating the shopping experience. Karma’s browser-based AI shopping assistant elevates the shopping experience for customers tremendously and makes online shopping more efficient and rewarding for them.”
Karma was founded with the mission to improve the online shopping experience via its AI-powered platform. By incorporating real-time merchandise data and using AI to analyze it, the platform alerts its users when the lowest available price for an item is met. So far in 2021, Karma has already saved more than $144 million to its more than 3 million users. Jonathan Friedman, Co-Founder and CEO at Karma, said about how the funding will help the startup fulfill its mission:
“This funding round will help us continue to enhance our core AI shopping assistant using machine learning to deliver smarter capabilities to our users and extend our “best price guarantee” on many more e-commerce sites. Behind the scenes, we are building the most extensive digital shopping network in the world. This will allow us to capitalize on opportunities in markets adjacent to the online shopping experience.”
With more than 2 billion people shopping online in 2020 and e-retail sales surpassing $4.2 trillion, Karma has experienced fast growth over the years. The startup will be allocating the funds to expand its team, improve its AI and Machine-learning predictive analytics, scale its user base, and disrupt new markets.
