Delhi-based eyewear startup Lenskart, which entered the unicorn club earlier this year, has invested in an AI-powered software company Tango Eye. Besides Lenskart, Silicon Valley-based seed funding platform RiSo Capital Fund and Gaurav Gulati, who is the head and chief investment officer at OYO CEO and founder Ritesh Agarwal-led Aroa Ventures, participated in the round.
The funding will enable Tango Eye to expand its operations, product development activities and business development as well, the company’s CEO and founder Surender Gounder told Inc42. A part of the funding will also be used for customer acquisition and hiring across roles.
According to ministry of corporate affairs filings accessed by Inc42, the company has already allocated nearly 30,387 equity shares at a nominal amount of INR 10 per share and a premium of INR 533 per share. Overall, the company will allocate nearly 55,249 equity shares at an issue price of INR 543 per share to the three investors.
Founded in 2018 by Gounder, Tango eye is an AI-powered software company that allows businesses to get insights on customer behavior by analysing store videos. The solution can be integrated into a range of services to understand customers’ consumption patterns in retail stores.
Its clientele includes 10 retail chains across Delhi, Mumbai, Bengaluru and Chennai. This includes cosmetics brand L’Occitane and beauty ecommerce platform Nykaa, which nearly 70 retail stores across more than 20 cities. Overall, the company is serving more than 300 stores, which it plans to scale up to 10K stores.
With the Covid-19 pandemic, the company upgraded its capabilities to include law enforcement features as well as other Covid-19-related precautionary measures. For instance,Tango Eye’s offerings can keep an eye on social distancing norms in stores, markets and other services. Tango Eye’s software also alerts the local authority about breaches.
Commenting on the new services, Gounder said, “that’s actually been helpful in connecting with retailers, get the conversation started. Our pivoting sent out a clear message that we understand what’s happening right now, and we are able to partner with them to get things stabilised and bring back consumer confidence. And it was fairly well received as well.”
With its latest offerings, the company believes that it can generate a revenue of INR 10 Cr by the end of FY2021.
Prior to this round, the company had raised INR 1 Cr in seed round from Credit Suisse’s Pakaj Kapoor and Temasek’s Siddhartha Pisharody. Tango Eye was also featured in Inc42 Plus’ ‘30 Startups To Watch’ listing for April 2020.
According to a report on the video analytics market, it is expected to grow from $3.23 Bn in 2018 to $ 8.55 Bn by 2023, at a Compound Annual Growth Rate (CAGR) of 21.5% during the forecast period.
With an increasing adoption rate of Internet of Things (IoT) and big data among enterprises, the Video Analytics Market is expected to gain major traction. Some of the companies in this segment are Vidooly, IntelliVision, Duranc, Staqu, Emza Visual Sense, Uncanny Vision, Cognitifai London, Delhi-based Corseco and San Francisco-based 3VR.