Zenline AI raises $1.6M pre-seed to help European retailers compete with platforms like Amazon and Temu

Swiss-based AI startup Zenline AI has secured $1.6 million in pre-seed funding to bring intelligent assortment decision-making to European retail.

Zenline AI develops artificial intelligence that combines margin data with market trends to deliver automated, product-level recommendations, from pricing actions to assortment consolidation. Retail teams use Zenline to support new product launches, rationalisation efforts, and the ongoing optimization of existing listings.

Arber Sejdiji, CEO of Zenline AI, shared:

We build AI agents that think like assortment decision-makers, but operate in seconds. Our mission is to empower European retailers to compete profitably again. Given how critical and shopper-centric assortment is, a retailer can win by increasing its top line and building a competitive edge against Amazon and Temu, because customers will easily find what they are looking for, consciously or not. The co-founder combines retail expertise with AI acumen, shaped at BCG, P&G, ETH Zurich, and the University of Cambridge.

Since early 2025, European retailers have been using Zenline AI, which now analyses more than one million SKUs. Its focus is on speed, delivering rapid insights and execution.

Zenline’s AI agents generate actionable recommendations for each product or category, drawing on margin data, competitive signals, social trends, and shopper behaviour. The system pinpoints assortment gaps, flags cannibalisation risks, and suggests concrete optimization steps.

Built in collaboration with retail teams, Zenline’s AI works even without internal retailer data, ensuring a strong operational fit.

The round was led by Seedcamp, with participation from Yellow, First Momentum, and Arc Investors. Zenline’s mission is to help European retail compete again by enabling smarter, AI-driven assortment decisions.

Sia Houchangnia, Partner at Seedcamp, said:

Zenline hits a nerve in retail tech. The future of category management is AI-powered. Until now, retailers lacked the foundation to make the most important decisions: what a strong assortment actually looks like. The team combines deep expertise in agentic systems and retail, and we’ve been genuinely impressed by their speed of execution. They have rethought assortment logic from the ground up to deliver immediate value to their first customers. This is exactly the kind of talent and solution coming out of Europe that we’re excited to back.

With the new funding, Zenline plans to accelerate product development, refine its AI model, and expand into additional verticals.