Avataar, an AI and computer vision startup, announced that it had raised $45 million in Series B funding. Tiger Global led the round, with existing investor Sequoia Capital India also participating. Across all funding rounds, the six-year-old startup has raised approximately $55.5 million, funded by the founder and CEO in the early years.
Avataar uses 3D product rendering to assist direct-to-consumer brands and e-commerce marketplaces shape their consumer journeys. Firms can incorporate Avataar’s plug-and-play technology into their systems, allowing customers to visualize products in the real-life size and feel in their living room via the phone’s camera.
According to Sravanth Aluru, founder and CEO of Avataar, the startup currently works with many companies, including the top two e-commerce marketplaces in furniture, large appliances, and other categories. He refused to reveal the clients’ names, citing confidentiality agreements. Some companies, such as Samsung and Pepperfry, have publicly acknowledged working with Avataar.
“Given the camera is the home screen, you see significantly higher engagement time, and brands are witnessing more than 3.5x sales conversion.”Sravanth Aluru, founder and CEO of Avataar
By 2025, nearly 75 percent of the global population and almost all people who use social and communication apps will be frequent AR users, according to a recent report co-authored by Snap and Deloitte. According to the report, over 100 million customers are already shopping using AR.
According to industry estimates, the digital and digitally influenced marketplace will grow to $18 trillion by 2025, providing a monetization opportunity of more than $50 billion over the next decade for the underlying platforms driving the 2D to 3D commerce shift.