Bengaluru-rooted Algonomy, a startup that offers algorithmic decisioning software for retail and consumer companies, will be acquiring Sri Lanka-based cloud technology startup Linear Squared.
Founded in 2015 by Sankha Muthu Poruthotage, Mohit Pande, and Rajith Munasinghe, Colombo-based Linear Squared specialises in building AI-powered demand planning and forecasting products for the consumer packaged goods (CPG), grocery and retail industries.
Algonomy, previously known as Manthan, enables omnichannel personalisation, customer journey analytics, merchandising analytics and supplier collaboration for the retail industry.
It claims to partner with over 400 retailers, consumer brands, quick-service restaurant chains and convenience stores across 20 countries.
“The intended acquisition would allow Algonomy to augment its product offering for consumer products and grocery retail industry segments by integrating Linear Squared’s best of breed demand planning and forecasting product technology into Algonomy’s retail merchandising and supply chain solutions portfolio,” said Atul Jalan, founder and CEO of Algonomy.
Algonomy will also benefit from Linear Squared’s large base of artificial intelligence and machine learning engineers based out of Colombo in Sri Lanka. This is an added benefit to the fact that both startups have a complementary product portfolio.
“We founded Linear Squared with a vision to deliver ready-to-use AI and ML-driven products that convert data to proactive actions to solve some of the most complex industry problems. We have spent the last six years building fantastic products that receive validation from global customers every day,” said Sankha Muthu Poruthotage, cofounder and CEO of Linear Squared.
“We’re excited at the prospect of joining Algonomy, which will help take our innovations to a much broader customer base at a faster pace than on our own. In the short term, it will improve time-to-market and business growth of our supply chain AI solutions for CPG and grocery retail segments,” added Poruthotage.
The global retail analytics market size was estimated to be $5.2 Bn in 2020. It is projected to grow from $5.84 Bn in 2021 to $18.33 Bn in 2028. The growing need to optimise revenue generation, sales performance and market trends are likely to drive this market’s growth.