Mad Street Den Secures $17 Mn To Scale Up Its Retail Automation Platform

Mad Street Den Secures $17 Mn To Scale Up Its Retail Automation Platform


Falcon Edge, Sequoia Capital India and Global Brain participated in the Series B round

The platform combines 7 different AI products to offer retail automation solutions

Cofounder and CEO Ashwini Asokan said the funds will be used to increase the team size

Computer vision and artificial intelligence startup Mad Street Den has raised $17 Mn in a Series B funding round for its retail automation product

The funding round has been led by Falcon Edge Capital, along with the participation of Mad Street Den’s existing investors Sequoia Capital India and Global Brain (a GP of KDDI Innovation Fund). Till date, the company has raised $27.5 Mn.

Talking to Inc42, cofounder and CEO Ashwini Asokan said that the funds will be used for hiring and product development. Further, the funds will help the company scale its existing customer base which already includes leading retailers from across the globe such as Macy’s, MercadoLibre and Indian conglomerate Tata.

Mad Street Den: Retail Automation With

Mad Street Den was founded in 2013 by Ashwini Asokan and her husband Anand Chandrasekaran and was registered in the US in 2016 as Mad Street Den Inc.

Its flagship platform combines seven different products, which include VueTag, VueModel, VueStyle, VueCommerce, VueMail, VueFind and VueStudio, to offer retailers a unified system.

Vue.AI uses image recognition and data science to extract retail catalogue data, analyse it with user behaviour and help retailers make better, faster decisions.

Retail automation essentially involves computer-aided completion of processes such as catalogue management, merchandising, fashion photography, personalising user journeys across channels, AI-enabled styling, outfitting and more.

Even though Asokan declined to share the total number of customers, she said that in India the company has four-five clients. The company claims to serve major retailers across the US, UK, India, Middle East and Latin America.

“The team is on a mission to put AI and intelligent automation in the hands of teams across the globe in ways that improve productivity and growth multi-fold. We’ve seen incredible growth in how they’ve brought this value across multiple functions in the retail industry in just two years since we started this journey with them,” said Anandamoy Roychowdhary, CTO and Director of Sequoia Capital India.

India A Nascent Market For

Speaking to Inc42, Asokan emphasised that the nature of retail in India is still different from western markets, where automation has been adopted rapidly.

“In India we are beginning to see demand of automation side of things in operations etc. We are deploying our AI in the same areas and now we are seeing interest,” she said.

She emphasised that the company is beginning to see a change with platforms such as Meesho and Udaan that are helping increase inbound sales for retailers. On the question of the changing ecommerce landscape where online-to-offline models are picking the pace, Asokan said that this is happening because after a point — online is a dead end.

AI-Based Automation In India

In India too, AI technologies are being applied in retail towards customer segmentation, inventory management, recommendations, campaign management, and to create insights for companies. AI is also helping retail companies enhance inventory management, targeted recommendations, and enabling them to keep churning out sticky content that makes customers want to visit stores, and also transact on them.

For India specifically, Asokan believes that the country has the talent, but doesn’t yet have a way to harness the talent to build AI. The battle to stay competitive comes at a tremendous cost to retailers who are projected to spend more than $7 Bn on AI over the next three years.

Going forward, Asokan expects to see the talent pool grow and believes that as opposed to building horizontal AI solutions, Indian startups can build vertically-scalable B2C or B2B applications using AI.

Research company Tractica forecasts revenue generated from the direct and indirect application of AI-based software to grow from $643.7 Mn in 2016 to $36.8 Bn by 2025. This represents a significant growth opportunity over the next six years for retail automation platforms such as and Mad Street Den.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

Unlock 60% OFF
Cancel Anytime
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Mad Street Den Secures $17 Mn To Scale Up Its Retail Automation Platform Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Mad Street Den Secures $17 Mn To Scale Up Its Retail Automation Platform Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Mad Street Den Secures $17 Mn To Scale Up Its Retail Automation Platform Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Mad Street Den Secures $17 Mn To Scale Up Its Retail Automation Platform Media
Mad Street Den Secures $17 Mn To Scale Up Its Retail Automation Platform Media
You’re in Good company