Spangle: $6 Million (Seed) Closed For AI-Based Commerce Platform For Retailers

By Amit Chowdhry • Mar 28, 2025

SpangleAI announced it emerged from stealth to launch an AI-based commerce platform for retailers to maximize revenue from paid traffic. The company is backed by leading firms Madrona Ventures and Streamlined Ventures, setting a new standard for AI-driven commerce, seamlessly integrating with retailers’ existing systems to scale and optimize the post-click consumer experience.

One of the most overlooked challenges in e-commerce is the disconnect between hyper-targeted marketing and one-size-fits-all shopping experiences. And the cost of each site visit has climbed 9% over the past year as brands and retailers grow more dependent on paid traffic to drive growth. Meanwhile, most consumers express frustration when personalized interaction expectations are unmet.

Despite the advances in AI, most digital shopping experiences remain fragmented and fail to learn from consumer behavior, missing the opportunity to leverage AI and reinforcement learning.

To bridge the customer experience gap, Spangle also delivers self-optimizing shopping journeys that are contextually relevant and adaptive based on consumer engagement in real time. And Spangle’s proprietary ProductGPT powers this experience with a large product model that decodes context, consumer interactions, and merchant data.

Combined with 360-degree product intelligence, Spangle’s AI agents autonomously tackle complex challenges at scale, delivering experiences that enhance revenue, boost conversion rates, and optimize efficiency to maximize the value of every visit.

Spangle’s AI platform delivered strong results in controlled A/B tests with multiple clients:

— 51% lift in conversion rates

— 46% increase in engagement

— 18% rise in Average Order Value (AOV)

— 2x improvement in Return on Ad Spend (ROAS)

Spangle also combines market-leading AI expertise with seasoned industry veterans from Amazon, Gap, and Saks Off Fifth to help retailers capitalize on commerce’s most costly missed opportunity.

KEY QUOTES:

“Digital commerce needs a fresh approach. That’s why we developed an AI platform tailored to the unique needs of brands and retailers — unlocking native AI shopping experiences that adapt to consumer engagement in real-time, deliver one-to-one interactions, and drive better results while streamlining operational inefficiencies. Personalization across retail has failed to live up to its promise due to its reliance on sparse, expensive, and backward looking customer data. No single merchant has enough customer data to make accurate predictions, and customers want more than repeat purchases. Inspired by social media platforms, customers are seeking relevance and variety, and we’re delivering on these changing expectations with a next-generation native AI e-commerce platform.”

– Maju Kuruvilla, CEO of SpangleAI

“AI has the potential to optimize relationships between consumers and brands, but many brands still face a gap between growing expectations and reality. To win, they must deliver relevant, scalable experiences that actually drive higher satisfaction and conversion. Spangle’s agentic AI has demonstrated tangible impact for brands by improving engagement and conversion, particularly in traditionally low-performing paid channels. We’re excited to support Spangle as they redefine how retailers connect with customers at the application layer.”

– Scott Jacobson, Managing Director at Madrona Ventures

“At WHP Global, we are committed to leveraging AI-driven innovations that enhance our brands and create meaningful customer experiences. By implementing Spangle’s technology for AnneKlein.com, we’ve unlocked new efficiencies and identified multiple areas where their core technology and ProductGPT can add significant value to our customers’ experience. We look forward to further integrating their AI solutions to deepen engagement and drive growth across our digital channels.”

– Gary Haas, VP of eCommerce at WHP Global, which owns a portfolio of global consumer brands, including Anne Klein

“Consumer expectations are evolving rapidly, fueled by generative AI’s adoption across the consumer landscape. Shoppers now expect technology to understand their intent, anticipate their next question, and deliver tailored results in real time, and e-commerce needs to meet those expectations to remain competitive. Spangle gets to the heart of this issue. Spangle offers a game-changing platform that empowers retailers to compete by improving consumer interactions and providing a scalable, sustainable path forward.”

– Ullas Naik, Founder & General Partner at Streamlined Ventures

“In my work with global retailers and through leading Coresight’s Retail AI Council, I consistently hear that executives are struggling to keep up with evolving consumer expectations while also managing rising acquisition costs. Unlocking the full potential of AI in retail requires deep industry expertise combined with world-class AI talent. With their deep domain expertise and track record of delivering value, Spangle is a company the industry should be watching closely.”

– Deborah Weinswig, CEO and Founder of Coresight Research