Estonian startup gets €6M funding boost to transform e-commerce with AI-powered visual search

Tallinn-based Miros has raised €6 million in a pre-Series A round led by EBRD Venture Capital and Tera Ventures, with participation from former Estonian President Toomas Hendrik Ilves. Miros uses AI-powered visual search technology to address a persistent challenge in e-commerce; lost sales due to difficulties in product discovery. By enabling shoppers to find items through images rather than words, Miros helps address cases where text-based search often falls short, particularly with visually complex products. The funds will be allocated toward enhancing the technology, expanding market reach, and driving R&D efforts.

Miros’ approach tackles the $2 trillion problem facing e-commerce: lost sales due to customers unable to find what they’re looking for. Using visual AI technology, Miros can predict shoppers’ intent, enabling users to find what they are looking for faster than traditional online search.

According to Google research, online shoppers can’t find what they’re looking for 60 percent of the time, especially when it comes to visually complex products that are hard to describe using words and categories.

Miros’ visual search technology offers retailers a competitive advantage by addressing this pain point. By offering customers a method to communicate their search ideas visually, Miros offers higher success rates, both in terms of product discovery and conversion. Neither Amazon, Google, nor Algolia have been able to offer a search based on images that someone can’t articulate. Miros’ clients have seen revenue increases of over 31 percent and 90 percent in customer loyalty.

Miros understands the context of products from the product images, even when product metadata is insufficient. Its AI recognizes shopping patterns and mirrors users’ wishes to help them find the intended item in 60 seconds or less.

Heikki Haldre, Co-Founder and CEO at Miros, commented, “The world doesn’t lack products. Finding them is the problem. We’ve all wasted hours online, endlessly scrolling and searching for the perfect item. At Miros, we’re building the new online shopping experience where you can find a product in less than 60 seconds. Even when the products are so visually complex that the words fail us, the shop understands us nevertheless. The experience feels magical. Why would I shop anywhere else and spend hours searching for products?”

Jomashop, a leading US-based luxury goods retailer, has successfully implemented Miros’ AI-powered visual search technology. Since adopting Miros, Jomashop has experienced a remarkable 3.6 percent increase in gross merchandise value (GMV) and a 1.3 percent lift in average order value (AOV).

Isaac Montaine, VP of Product Management at Jomashop, said, “Miros has been a game-changer for our business. By empowering customers to discover products effortlessly, we’ve seen a significant improvement in sales and customer satisfaction.

Aziza Zakhidova, Associate Director at EBRD Venture Capital, added, ”We are excited to back Heikki and team as they transform the search experience in e-commerce. Miros visual search is impressive: buyers can enjoy a more intuitive shopping experience and find what they are looking for, while retailers can see improvements in conversions. By augmenting product discovery with visual search, Miros has the potential to address a fundamental pain point in e-commerce search.”

Toomas Hendrik Ilves, former President of Estonia, a leader in pushing the digitization of his country and today an angel investor himself, commented, “As a strong supporter of innovation in technology, especially using artificial intelligence, I was particularly impressed by Miros’ ability to address a fundamental challenge in e-commerce – the frustration of not finding what I am looking for on existing internet search engines. It took just 17 minutes to decide I wanted to invest when I saw firsthand how Miros’ powerful AI-powered visual search technology can completely change and revolutionize online shopping globally. I am always thrilled to see Estonian entrepreneurs at the forefront of innovation.”

Before Miros, Co-Founders Heikki Haldre (CEO) and Paul Pallin (CTO) co-founded Fits.me, a bio-robotics technology for fashion e-commerce acquired by Rakuten, Japan’s answer to Amazon. They were joined by Mart Parve, Chief Product Officer, as the third Miros Co-Founder.

Created in the leading European computer vision AI research institution, the University of Tartu, Miros’ retail technology has yielded significant improvements for its clients. The company reports revenue growth of 9.8 percent across the board, with customers Jomashop and REVOLVE experiencing 3.6 percent and 4.5 percent increases in gross merchandise value (GMV), respectively.

Miros has established partnerships with industry giants like SAP, Nvidia, and PwC, demonstrating its credibility and potential for widespread adoption. The company is also actively expanding its market reach, focusing on European and US retailers.

Miros’ team of 25 is based in Tallinn, London, and Lisbon. The company is targeting a global market with its unique solution, and the technology has substantial implications for European and US retailers. As part of its expansion, the company is aggressively expanding in the US through partnerships and hiring.

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