Stockholm-based marketing analytics startup Dema.ai has raised €4 million from investors led by J12 Ventures for its pre-seed funding round.
E-commerce allows basically anyone to sell goods directly, but it isn't a level playing field. Countless advantages stem from the data stacks operated by the giants of retail, which give these companies access to granular, targeted data for marketing purposes while small merchandise value businesses are still fiddling around with top-level traffic and sales outlines.
Besides, data-driven advertising is getting more pricey. The cost per thousand impressions climbed by an annual 61% at Meta's social media ads marketplace as of May, and further still at Google's programmatic display (75%) and at video social media app TikTok (185% on the year, all figures from AdSkate.)
Earlier this year Dema.ai's founding trio (Marcus Tagesson, Henrik Hoffman and David Feldell) unveiled a new product for smaller businesses struggling with online ads.
An estimated 1% of e-commerce possesses internal data science and engineering departments who can perform highly intricate data marketing workloads.
Dema.ai deploys machine learning to automate commercial data aggregation, cleaning and structuring, helping small online retailers close the gap.
Tagesson says: "We created Dema.ai because we had seen the struggles first hand when building my previous company that grew from 0 to over 120 million EUR in GMV (gross merchandise value).
"Many e-commerce companies today are looking at the wrong metrics, and It's more important than ever to get in control of your profitable customer cohorts, inventory, and cash-flow in real time. "
J12 Ventures led the pre-seed raise with participation from several angel investors, and with the investment Dema.ai is now eyeing an expanded product and commercial operation, with the help of newly-hired data scientists and engineers.
The software platform is about to begin beta testing. Dema.ai touts key no-code features that are accessible for marketing departments without extensive IT and software engineering resources. Through the use of machine learning, the software is able to make AI-based predictions based on all of the clients data sources, producing real-time marketing insights.
Tagesson previously founded Stockholm-headquartered Babyshop Group, a children's clothing retailer, and has reconnected with his former Babyshop department leads, David Feldell and Henrik Hoffman, for the ride at his latest startup.
Having deep e-retailing expertise was helpful as Dema.ai pitched for its first formal fundraise. Luca Banderet, CEO and Founder of J12 Ventures, also backing e-commerce through online fruit stall marketplace TradeBay and last-mile delivery solution Airmee, said the sector would "change rapidly" in coming years as more e-commerce players emphasise profitability through use of data-driven, actionable insights.
Banderet added: "Marcus, David and Henrik have gathered a team with deep insights and networks in the industry and are arguably well positioned to build just that.
"They have great possibilities to build Dema.ai to become a global category leader in their target segment and beyond.”